Although significant developments have taken place in the area of
valuation of the environment, the gap between theoretical principles and
their operationalisation still remains. This paper makes an attempt to
contribute towards bridging this gap. It explores the ways of ‘doing’
environmental valuation in practice in the specific context of a proposed
hydroelectric project. Valuation is done within the overall framework of
cost-benefit analysis. In the process, a number of methodological issues
in environmental cost-benefit analysis have been dealt with.
JEL Classification : H 43
Key words: Hydroelectric project, environment, valuation, discount
rate, social costs and benefit
