Natural Treatment Systems and Importance of Social Cost Benefit Analysis in Developing Countries: A Critical Review

Abstract

This review article attempts to analyse the social issues that impact the performance of natural treatment systems (NTSs). An NTS is a decentralised wastewater treatment system found to be appropriate in developing countries due to its affordability and lower technicity. However, if socio-economic and institutional issues of community are ignored then NTSs may turn out to be unsuitable for developing countries. The article also takes a critical view on the extant literature which ignores the social cost of NTSs. The social cost of NTSs may be high as a decentralised system requires the engagement of various governmental agencies, research institutes and the community. The cost of engagement may make NTSs a socio-economically unattractive proposition. The article discusses the variables to be considered for the social cost-benefit analysis. It also discusses the implications of social cost-benefit analysis for appreciating the incentives and net benefits for collective actions at the community level. Social cost-benefit analysis can help overcome the initial difficulty of high financial cost and usher sustainability.

The Effect of Transaction Costs on the Sustainability of Milkfish Aquaculture in North Coast of Java, Indonesia

“…In calculating transaction costs, two parties are involved in the course of negotiations. This process is important because many jobs fail at this stage (De et al, 2022). Even though the capital costs are low but the transaction costs are high, production may fail.…”