Evaluation And Adjustment Of The Dnp Benefit Equation: An Approach Based On Hedonic Prices

Abstract

This study critically examines the benefit equation proposed by the National Planning Department (DNP) in the context of evaluating investment in social projects, identifying its weaknesses, mainly in relation to the absence of environmental variables and the regional context. The documentary review method was used, complemented by an analysis of econometric models in which hedonic prices were used to assess environmental and social attributes in public investment projects. Variables that can be assessed for their effects on quality of life and the environment were selected, and the analysis was carried out using various statistical techniques. The findings show that the current equation underestimates intangible benefits and presents a methodological rigidity that restricts its applicability at the regional level. Consequently, an alternative equation is presented with the intention of improving the valuation of these benefits by emphasizing environmental and social factors, thus favoring decision-making within public investment.