modeling household savings?
I am comparing the economic impacts of two types of stormwater infrastructure: Green infrastructure (e.g., creating more pervious area using green approaches) and grey infrastructure (e.g., large tunnels, etc.). The two alternatives would be funded through water rate increases so I am just looking at the relative impact. One of the alternatives costs a little bit more than the other (about $64 million over 35 years). In order to directly compare alternatives, I need to have the same level of spending. Is there a way to model that under the cheaper alternative, households would essentially be saving $64 million over the 35 years. This way I could directly compare the impacts. Could I model this through a household income change?
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Hi Janet, You could certainly do that - with a Household Income Change Activity, the software will take out savings and personal taxes, which is exactly what we want. Note that this assumes that households will save and spend the "cost savings" as they spend all other income - that is probably the safest assumption in the absence of additional information.0
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