{"id":94,"date":"2018-01-26T15:46:05","date_gmt":"2018-01-26T15:46:05","guid":{"rendered":"http:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/?page_id=94"},"modified":"2019-06-21T20:56:06","modified_gmt":"2019-06-21T20:56:06","slug":"3-1-cost-benefit-analysis","status":"publish","type":"page","link":"https:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/knowledge-toolkit\/3-methodology-assessment\/3-1-cost-benefit-analysis\/","title":{"rendered":"3.1. Cost-Benefit Analysis"},"content":{"rendered":"<section class=\"l-section wpb_row height_medium\"><div class=\"l-section-h i-cf\"><div class=\"g-cols offset_medium\"><div class=\"vc_col-sm-12 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"g-cols wpb_row offset_medium vc_inner \"><div class=\"vc_col-sm-8 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<div id=\"c203\" class=\"csc-default\">\n<p>Cost-Benefit Analysis (CBA) is the standard economic method to assess the financial viability of investments. By comparing the costs of a banana research project to the estimated benefits over time, a Cost-Benefit Analysis helps determine whether the benefits exceed costs.<\/p>\n<p>Watch our video to learn more about CBA and understand how to calculate its two key performance indicators \u2018Net Present Value\u2019 and \u2018Internal Rate of Return\u2019 that can help us rank different banana research options.<\/p>\n<\/div>\n<div id=\"c204\" class=\"csc-default\">\n<p>Find out more about how we estimated the\u00a0benefits\u00a0and\u00a0costs\u00a0of banana research options within the Cost-Benefit Analysis framework.<\/p>\n<p>Download the video script and visuals\u00a0<a href=\"http:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2018\/01\/CBA_Script_and_Slides_PDF_Handout.pdf\">HERE<\/a><\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p class=\"headinglefttitle mt40\"><strong>3.1.1. Benefits<\/strong><\/p>\n<p>Estimating the benefits of banana research options within the Cost- Benefit Analysis framework included the following steps. Click on the links below to find out more.<\/div> <\/div> <\/div><\/div><div class=\"vc_col-sm-4 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-video ratio_16x9\"><div class=\"w-video-h\"><iframe loading=\"lazy\" width=\"420\" height=\"315\" src=\"\/\/www.youtube.com\/embed\/alKKTOiXak0?rel=0\" allowfullscreen><\/iframe><\/div><\/div><\/div><\/div><\/div><div class=\"w-separator type_invisible size_medium thick_1 style_solid color_border cont_none\"><span class=\"w-separator-h\"><\/span><\/div><div class=\"g-cols wpb_row offset_medium vc_inner \"><div class=\"vc_col-sm-8 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<p class=\"headinglefttitle mt40\"><strong>3.1.1.1. Benefit types and counterfactual<\/strong><\/p>\n<\/div> <\/div> <div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<div id=\"c207\" class=\"csc-default\">\n<p>Now we understand how costs and benefits can be compared in a way that adjusts to the timing for when they occur. Let\u2019s explore what types of benefits we expect from typical banana research investments and how we would go about assigning a monetary value to them. One fundamental concept that we will need to understand is the \u2018counterfactual\u2019, which is the economic term to describe \u2018what would have happened without our intervention\u2019 and constitutes the baseline for measuring changes.<\/p>\n<\/div>\n<div id=\"c210\" class=\"csc-default\">\n<p>This means that when assessing the benefits of a specific banana research intervention, we are comparing a situation\u00a0<b><i>with<\/i>\u00a0<\/b>the research investment against an alternative situation\u00a0<b><i>without<\/i>\u00a0<\/b>the investment. Watch the following video for an illustration of these two scenarios and a description of the types of benefits that can occur.<\/p>\n<p>Download the video script and visuals\u00a0<a href=\"http:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2018\/12\/Counterfactual_Script_and_Slides_PDF_Handout.pdf\">here<\/a><\/p>\n<\/div>\n<\/div> <\/div> <\/div><\/div><div class=\"vc_col-sm-4 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-video ratio_16x9\"><div class=\"w-video-h\"><iframe loading=\"lazy\" width=\"420\" height=\"315\" src=\"\/\/www.youtube.com\/embed\/NmnN2kkV-5Y?rel=0\" allowfullscreen><\/iframe><\/div><\/div><\/div><\/div><\/div><div class=\"w-separator type_invisible size_medium thick_1 style_solid color_border cont_none\"><span class=\"w-separator-h\"><\/span><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_medium\"><div class=\"l-section-h i-cf\"><div class=\"g-cols offset_medium\"><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<p class=\"headinglefttitle mt40\"><strong>3.1.1.2. Target domain<\/strong><\/p>\n<\/div> <\/div> <div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<div id=\"c207\" class=\"csc-default\">\n<p>When starting to estimate benefits, we need to pay attention to the share of the production area that is affected by the constraint or for which the new technology is suitable i.e. the target domain for our intervention. Carefully defining the target domain is especially important for our assessment due to the diverse characteristics of different cultivar groups. Watch the following video for an illustration of how to identify the target domain.<\/p>\n<p>Download the video script and visuals\u00a0<a href=\"http:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2018\/12\/Target_Script_and_Slides_PDF_Handout.pdf\">here<\/a><\/p>\n<\/div>\n<\/div> <\/div> <\/div><\/div><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-video ratio_16x9\"><div class=\"w-video-h\"><iframe loading=\"lazy\" width=\"420\" height=\"315\" src=\"\/\/www.youtube.com\/embed\/FPdg8nz8MXg?rel=0\" allowfullscreen><\/iframe><\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_medium\"><div class=\"l-section-h i-cf\"><div class=\"g-cols offset_medium\"><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<p class=\"headinglefttitle mt40\"><strong>3.1.1.3. Adoption profile<\/strong><\/p>\n<\/div> <\/div> <div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<div id=\"c207\" class=\"csc-default\">\n<p>Estimating the number of adopters (i.e. farmers who will use the new technology) as well as the pace of adoption (i.e. how long it will take for farmers to start using the new technology) is extremely crucial in the assessment of a research option\u2019s benefits. The adoption estimates largely drive the results of the assessment and therefore, will later need special consideration in the\u00a0<a class=\"internal-link\" title=\"Opens internal link in current window\" href=\"http:\/\/www.rtb-bananaresearchpriorities.org\/knowledge-toolkit\/6-results\/64-sensitivity-analysis\/\" target=\"_self\" rel=\"noopener noreferrer\">sensitivity analysis<\/a>.<\/p>\n<p>The following video explains the characteristics of an adoption profile and illustrates how it changes if we modify key adoption parameters.<\/p>\n<p>Download the video script and visuals\u00a0<a href=\"http:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2018\/12\/Adoption_Script_and_Slides_PDF_Handout.pdf\">here<\/a><\/p>\n<\/div>\n<\/div> <\/div> <\/div><\/div><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-video ratio_16x9\"><div class=\"w-video-h\"><iframe loading=\"lazy\" width=\"420\" height=\"315\" src=\"\/\/www.youtube.com\/embed\/8QsQPXoPPxA?rel=0\" allowfullscreen><\/iframe><\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_medium\"><div class=\"l-section-h i-cf\"><div class=\"g-cols offset_medium\"><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<p class=\"headinglefttitle mt40\"><strong>3.1.1.4. Economic Surplus Modelling<\/strong><\/p>\n<\/div> <\/div> <div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<div id=\"c207\" class=\"csc-default\">\n<p>The core of this priority assessment exercise is to quantify the benefits resulting from different types of banana research investments. All of the research lines included lead to the development of adoptable innovations such as a higher yielding variety or a new crop management regime. If these technologies are adopted by farmers, we expect changes in economic welfare &#8211; a term used by economists to describe the utility\/benefits gained by an individual or a group of persons through, in our case, producing and consuming bananas. This change in economic welfare represents the benefits of research and can be quantified with an Economic Surplus (ES) Model.<\/p>\n<p>Watch the following clip to learn more about ES models and the calculation of benefits.<\/p>\n<p>Download the video script and visuals\u00a0<a href=\"http:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2018\/12\/ESM_Script_and_Slides_PDF_Handout.pdf\">here<\/a><\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p class=\"headinglefttitle mt40\"><strong>3.1.2. Costs<\/strong><\/p>\n<p>After estimating the benefits that would result from each research option, we need to calculate their costs in order to derive the Net Present Values and Internal Rate of Returns and to be able to assess and compare research options as described in the Cost-Benefit Analysis section.<\/p>\n<p>In our framework, we considered two types of costs: Research and Develpment cost and dissemination cost.<\/div> <\/div> <\/div><\/div><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-video ratio_16x9\"><div class=\"w-video-h\"><iframe loading=\"lazy\" width=\"420\" height=\"315\" src=\"\/\/www.youtube.com\/embed\/MNJmTcxZyvg?rel=0\" allowfullscreen><\/iframe><\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_medium\"><div class=\"l-section-h i-cf\"><div class=\"g-cols offset_medium\"><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<p class=\"headinglefttitle mt40\"><strong>3.1.2.1. Research and development costs<\/strong><\/p>\n<\/div> <\/div> <div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<div id=\"c207\" class=\"csc-default\">\n<div class=\"row\">\n<div class=\"col-lg-12 col-md-12 col-sm-12 col-xs-12\">\n<div id=\"c283\" class=\"csc-default\">\n<div class=\"csc-textpic csc-textpic-intext-right-nowrap\">\n<div class=\"csc-textpic-text\">\n<p>The Research and Development costs for this priority assessment were derived from detailed budgets extracted from either existing proposals or were specifically compiled for this exercise by resource persons.<\/p>\n<p>In the table below we can exemplarily see the research and development costs for the \u2018Recovery from Banana Bunchy Top Virus\u2019 research option that are borne by the CGIAR research centres. The costs of, for example, scientists, fieldwork or laboratories were compiled for every year of the research phase.<\/p>\n<p>As a next step, these Research and Development costs were matched 1:1 with similar costs expected at the level of national agricultural research systems (NARS) in the process of developing and adapting the technologies. Thus, the costs of research and development consist of the costs borne by the CGIAR research centres and the costs borne by the national agricultural research system. This provided the total Research and Development costs for each year to be then discounted to their present values.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"row mt10\">\n<div class=\"col-lg-12 col-md-12 col-sm-12 col-xs-12\">\n<div id=\"c379\" class=\"csc-default\">\n<p class=\"align-left\">R&amp;D Costs: Example of \u201cRecovery from BBTV\u201d Research Option<\/p>\n<table class=\"table table-striped\">\n<thead>\n<tr>\n<th scope=\"col\">Item<\/th>\n<th scope=\"col\">#<\/th>\n<th>Rate (US$\/day)<\/th>\n<th scope=\"col\">Year 1 [$&#8217;000]<\/th>\n<th scope=\"col\">Year 2 [$&#8217;000]<\/th>\n<th scope=\"col\">Year 3 [$&#8217;000]<\/th>\n<th scope=\"col\">Year 4 [$&#8217;000]<\/th>\n<th scope=\"col\">Year 5 [$&#8217;000]<\/th>\n<th scope=\"col\">Year 6 [$&#8217;000]<\/th>\n<th scope=\"col\">Year 7 [$&#8217;000]<\/th>\n<th scope=\"col\">Year 8 [$&#8217;000]<\/th>\n<th scope=\"col\">Year 9 [$&#8217;000]<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Senior Scientist<\/td>\n<td class=\"align-right\">1<\/td>\n<td class=\"align-right\">800<\/td>\n<td class=\"align-right\">160<\/td>\n<td class=\"align-right\">160<\/td>\n<td class=\"align-right\">160<\/td>\n<td class=\"align-right\">160<\/td>\n<td class=\"align-right\">160<\/td>\n<td class=\"align-right\">160<\/td>\n<td class=\"align-right\">160<\/td>\n<td class=\"align-right\">160<\/td>\n<td class=\"align-right\">160<\/td>\n<\/tr>\n<tr>\n<td>Scientist<\/td>\n<td class=\"align-right\">4<\/td>\n<td class=\"align-right\">600<\/td>\n<td class=\"align-right\">480<\/td>\n<td class=\"align-right\">480<\/td>\n<td class=\"align-right\">480<\/td>\n<td class=\"align-right\">480<\/td>\n<td class=\"align-right\">480<\/td>\n<td class=\"align-right\">480<\/td>\n<td class=\"align-right\">480<\/td>\n<td class=\"align-right\">480<\/td>\n<td class=\"align-right\">480<\/td>\n<\/tr>\n<tr>\n<td>Research Assistant<\/td>\n<td class=\"align-right\">7<\/td>\n<td class=\"align-right\">110<\/td>\n<td class=\"align-right\">154<\/td>\n<td class=\"align-right\">154<\/td>\n<td class=\"align-right\">154<\/td>\n<td class=\"align-right\">154<\/td>\n<td class=\"align-right\">154<\/td>\n<td class=\"align-right\">154<\/td>\n<td class=\"align-right\">154<\/td>\n<td class=\"align-right\">154<\/td>\n<td class=\"align-right\">154<\/td>\n<\/tr>\n<tr>\n<td>NARS Scientist<\/td>\n<td class=\"align-right\">7<\/td>\n<td class=\"align-right\">250<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\"><\/td>\n<\/tr>\n<tr>\n<td>PHD students<\/td>\n<td class=\"align-right\">4<\/td>\n<td class=\"align-right\">100<\/td>\n<td class=\"align-right\">80<\/td>\n<td class=\"align-right\">80<\/td>\n<td class=\"align-right\">80<\/td>\n<td class=\"align-right\">80<\/td>\n<td class=\"align-right\">80<\/td>\n<td class=\"align-right\">80<\/td>\n<td class=\"align-right\">80<\/td>\n<td class=\"align-right\">80<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>MsC Students<\/td>\n<td class=\"align-right\">14<\/td>\n<td class=\"align-right\">80<\/td>\n<td class=\"align-right\">224<\/td>\n<td class=\"align-right\">224<\/td>\n<td class=\"align-right\">224<\/td>\n<td class=\"align-right\">224<\/td>\n<td class=\"align-right\">224<\/td>\n<td class=\"align-right\">224<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Field Work<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"align-right\">1,000<\/td>\n<td class=\"align-right\">1,000<\/td>\n<td class=\"align-right\">1,000<\/td>\n<td class=\"align-right\">1,000<\/td>\n<td class=\"align-right\">1,000<\/td>\n<td class=\"align-right\">1,000<\/td>\n<td class=\"align-right\">1,000<\/td>\n<td class=\"align-right\">1,000<\/td>\n<td class=\"align-right\">1,000<\/td>\n<\/tr>\n<tr>\n<td>Laboratory<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"align-right\">210<\/td>\n<td class=\"align-right\">210<\/td>\n<td class=\"align-right\">210<\/td>\n<td class=\"align-right\">210<\/td>\n<td class=\"align-right\">210<\/td>\n<td class=\"align-right\">210<\/td>\n<td class=\"align-right\">210<\/td>\n<td class=\"align-right\">210<\/td>\n<td class=\"align-right\">210<\/td>\n<\/tr>\n<tr>\n<td>Equipment<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<\/tr>\n<tr>\n<td>Others<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"align-right\">50<\/td>\n<td class=\"align-right\">50<\/td>\n<td class=\"align-right\">50<\/td>\n<td class=\"align-right\">50<\/td>\n<td class=\"align-right\">50<\/td>\n<td class=\"align-right\">50<\/td>\n<td class=\"align-right\">50<\/td>\n<td class=\"align-right\">50<\/td>\n<td class=\"align-right\">50<\/td>\n<\/tr>\n<tr>\n<td>Travel<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<td class=\"align-right\">350<\/td>\n<\/tr>\n<tr>\n<td>Inst. support\/overhead (15% of costs)<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"align-right\">511<\/td>\n<td class=\"align-right\">511<\/td>\n<td class=\"align-right\">511<\/td>\n<td class=\"align-right\">511<\/td>\n<td class=\"align-right\">511<\/td>\n<td class=\"align-right\">511<\/td>\n<td class=\"align-right\">478<\/td>\n<td class=\"align-right\">478<\/td>\n<td class=\"align-right\">466<\/td>\n<\/tr>\n<tr>\n<td>TOTAL<\/td>\n<td><\/td>\n<td><\/td>\n<td class=\"align-right\">3,919<\/td>\n<td class=\"align-right\">3,919<\/td>\n<td class=\"align-right\">3,919<\/td>\n<td class=\"align-right\">3,919<\/td>\n<td class=\"align-right\">3,919<\/td>\n<td class=\"align-right\">3,919<\/td>\n<td class=\"align-right\">3,662<\/td>\n<td class=\"align-right\">3,662<\/td>\n<td class=\"align-right\">3,570<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"small\"><i><b>Source:<\/b>\u00a0Budget compiled for the RTB Priority Assessment to show funds required for research and development activities described in Section 3 of the report and under &#8221; Recovery of smallholder banana production from BBTV in Africa and Asia&#8221;<\/i><\/p>\n<\/div>\n<div id=\"c285\" class=\"csc-default\">\n<div class=\"csc-textpic-text\">\n<p>As mentioned before, all past research costs are treated as sunk costs, which means that we disregard them for the assessment. This is important when interpreting results, since disregarded past costs result in higher net present values and rates of returns. Furthermore, technologies for which research has been going on for some time will likely perform more favourable in the assessment for two more reasons. First, the research lag will be shorter as adoptable innovations will be available earlier compared to similar research options just starting. Second, chances are that the probability of research success will be higher &#8211; effectively a factor with which benefits are multiplied &#8211; as some of the research has already been completed and thus the outcome is better known and\/or success closer within reach.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div> <\/div> <\/div><\/div><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-image\"><div class=\"us-frame\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2019\/01\/bana1.jpg\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2019\/01\/bana1.jpg 300w, https:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2019\/01\/bana1-150x150.jpg 150w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_medium\"><div class=\"l-section-h i-cf\"><div class=\"g-cols offset_medium\"><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<p class=\"headinglefttitle mt40\"><strong>3.1.2.2. Dissemination costs<\/strong><\/p>\n<\/div> <\/div> <div class=\"wpb_text_column \"><div class=\"wpb_wrapper\">\n<div id=\"c207\" class=\"csc-default\">\n<div class=\"row\">\n<div class=\"col-lg-12 col-md-12 col-sm-12 col-xs-12\">\n<div id=\"c283\" class=\"csc-default\">\n<div class=\"csc-textpic csc-textpic-intext-right-nowrap\">\n<div class=\"csc-textpic-text\">\n<p>Research results such as a new variety or improved agronomic practises need to be disseminated to users, in our case banana farmers. This process is linked to specific costs which are called dissemination cost. We used fixed dollar values that were derived from former CGIAR impact assessment studies for every new hectare of adoption.<\/p>\n<p>In the assessment, we used two different levels of dissemination costs dependent on the type of the innovation: for knowledge intensive technologies, such as improved crop management, we assumed dissemination costs of $ 80 per every new hectare of adoption; and for less knowledge intensive and easier to spread technologies, such as new varieties, a lower, one-time rate of $ 50 per every new hectare of adoption was applied.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div> <\/div> <\/div><\/div><div class=\"vc_col-sm-6 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-image\"><div class=\"us-frame\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2019\/01\/bio2.jpg\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2019\/01\/bio2.jpg 300w, https:\/\/www.rtb.cgiar.org\/rtb-bananaresearchpriorities\/wp-content\/uploads\/sites\/9\/2019\/01\/bio2-150x150.jpg 150w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/div><\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"Cost-Benefit Analysis (CBA) is the standard economic method to assess the financial viability of investments. By comparing the costs of a banana research project to the estimated benefits over time, a Cost-Benefit Analysis helps determine whether the benefits exceed costs. Watch our video to learn more about CBA and understand how to calculate its two...","protected":false},"author":12,"featured_media":0,"parent":93,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-94","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>3.1. 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