Development of Measurement Technique of External Cost for Evaluating Cost Reduction

Abstract

In enforcement of public works project, the government decided to reduce the general cost that include an external cost such as influence reduction to environment in addition to a construction cost, and the government performs a continuous action. However evaluating a reduction of many external costs is very difficult. Because there are extremely few money conversion value of external cost.
Therefore, in this study we analyze an existing measurement example to evaluate an external cost as a cost reduction, and develop a simple and easy measurement technique for making a new conversion value of external cost.