03 / Economics
Theo
Tests the economic case.
Theo connects physical model results to costs and benefits, then examines projects and portfolios under stated economic assumptions.
- Economic studies
- Cost-benefit analysis
- Portfolio optimisation
03 / In practice
Working with Theo.
Theo assesses the economics of a study. He uses model results, costs and benefits to compare projects and portfolios under stated assumptions.
Cost-benefit analysis
Compare a project with the baseline. State the study period, discount rate and benefit categories so others can check the result.
Portfolio optimisation
Compare projects as a portfolio. Theo can show how the preferred mix changes with the objective or constraints.
Economic studies
Use model results to calculate costs, benefits and welfare effects. State the scenario and economic assumptions with each result.
Auditable assumptions
Record the version of each economic input. If a cost, discount rate or mapping is missing, Theo should flag it.
How does this project compare with the other options?
Example economic question
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