Civil Engineering Reference
In-Depth Information
between economic efficiency, protection of the natural environment and the
spending of taxpayers' money. Systems of
value management
can also be used to
assess the efficiency, environmental impact and general effectiveness of projects. The
use of value management is slowly increasing in both public and private sectors and
will be discussed further in relation to construction projects in
Chapter 6
.
A recurring theme of this text involves studying how the construction industry
can simultaneously embrace environmental, social and business concerns. Hence
we shall, implicitly and explicitly, revisit the three strands of efficiency, equity and
environment several times before reaching the concluding chapter of the topic -
which reviews the possibility of the construction industry becoming sustainable.
Key Points 2.4
❍
Ideas relating to efficiency, equity and the environment have gained validity
since the sustainable development agenda has increased in importance.
❍
There are two concepts of efficiency: productive efficiency - when inputs
are not wasted; and allocative efficiency - when resources are employed in
their highest-valued uses.
❍
There are two concepts of equity (or fairness): horizontal equity - equality
of opportunity; and vertical equity - actions to achieve social justice or
fairness.
❍
A free market system encourages efficiency and a centrally planned system
promotes equity.
❍
There are two concepts of cost: private costs - the costs to the first
party; and external costs - the costs to third parties. The prevalence of
environmental problems can be explained by the fact that external costs
can be ignored or overlooked by those considering just private costs.
❍
Problems relating to the environment seem to pervade both free market and
centrally planned systems of resource allocation.
❍
A recurring theme of this text is sustainable construction, which depends
upon the industry embracing the three concerns of efficiency, equity
and the environment.
