{"id":3321,"date":"2020-06-02T09:52:40","date_gmt":"2020-06-02T07:52:40","guid":{"rendered":"https:\/\/www.ecoshape.org\/en\/tools\/monte-carlo-simulation-and-social-cost-benefit-analysis\/"},"modified":"2020-10-12T13:30:47","modified_gmt":"2020-10-12T11:30:47","slug":"monte-carlo-simulation-and-social-cost-benefit-analysis","status":"publish","type":"tool","link":"https:\/\/www.ecoshape.org\/en\/tools\/monte-carlo-simulation-and-social-cost-benefit-analysis\/","title":{"rendered":"Monte Carlo simulation and Social Cost Benefit Analysis"},"content":{"rendered":"\n<p><a href=\"http:\/\/en.wikipedia.org\/wiki\/Monte_Carlo_method\" target=\"_blank\" rel=\"noreferrer noopener\">Monte Carlo simulation<\/a>\u00a0is a method based on repeated random sampling of inputs to a deterministic model or calculation procedure.\u00a0With Monte Carlo simulation, cumulative uncertainties of nature values can be integrated in a socio-economic cost benefit analysis.\u00a0In the Netherlands, an uncertainty analysis is mandatory in every socio-economic cost-benefit analysis (SCBA), according to the\u00a0EMVI-guideline. This also applies to other countries that have SCBA guidelines. The purpose of such an analysis is to determine the influence of uncertain assumptions on the balance (net present value) and ranking of the alternatives. In many SCBA\u2019s, the uncertainty analysis is executed in a rather informal way. With the tool presented here, a more formal probabilistic sensitivity analysis can be carried out, based on the Monte Carlo simulation.\u00a0<\/p>\n\n\n\n<p><strong>Type: <\/strong>Method<br><strong>Project Phase: <\/strong>Planning &amp; Design, Initiation<br><strong>Type of assessment: <\/strong>Environmental Economics<br><strong>Purpose: <\/strong>Integrating cumulative uncertainties of nature values in a socio-economic cost benefit analysis<br><strong>Requirements: <\/strong>Statistical skills, knowledge on cost-benefit analyses<strong> <\/strong><br><strong>Relevant Software:<\/strong> Excel, mathematical software packages (eg. MATLAB)<strong> <\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image is-style-default\"><img decoding=\"async\" src=\"https:\/\/www.ecoshape.org\/app\/uploads\/sites\/2\/2020\/05\/alternatives-1.png\" alt=\"\" \/><figcaption>Monte Carlo simulation of an alternative, resulting in (social) cost and benifit. <\/figcaption><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"author":2,"featured_media":10086,"parent":0,"menu_order":0,"template":"","phase":[9,8],"tooltype":[18],"type-of-assessment":[13],"class_list":["post-3321","tool","type-tool","status-publish","has-post-thumbnail","hentry","phase-planning-design","phase-initiation","tooltype-method","type-of-assessment-environmental-economics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Monte Carlo simulation and Social Cost Benefit Analysis - EcoShape<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ecoshape.org\/en\/tools\/monte-carlo-simulation-and-social-cost-benefit-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Monte Carlo simulation and Social Cost Benefit Analysis\" \/>\n<meta property=\"og:description\" content=\"Monte Carlo simulation\u00a0is a method based on repeated random sampling of inputs to a deterministic model or calculation procedure.\u00a0With Monte Carlo simulation, cumulative uncertainties of nature values can be integrated in a socio-economic cost benefit analysis.\u00a0In the Netherlands, an uncertainty analysis is mandatory in every socio-economic cost-benefit analysis (SCBA), according to the\u00a0EMVI-guideline. This also applies [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ecoshape.org\/en\/tools\/monte-carlo-simulation-and-social-cost-benefit-analysis\/\" \/>\n<meta property=\"og:site_name\" content=\"EcoShape - EN\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/groups\/209018792453642\" \/>\n<meta property=\"article:modified_time\" content=\"2020-10-12T11:30:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ecoshape.org\/app\/uploads\/sites\/2\/2020\/06\/alternatives.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1065\" \/>\n\t<meta property=\"og:image:height\" content=\"780\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@ecoshapeBwn\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ecoshape.org\\\/en\\\/tools\\\/monte-carlo-simulation-and-social-cost-benefit-analysis\\\/\",\"url\":\"https:\\\/\\\/www.ecoshape.org\\\/en\\\/tools\\\/monte-carlo-simulation-and-social-cost-benefit-analysis\\\/\",\"name\":\"Monte Carlo simulation and Social Cost Benefit Analysis - 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