Selection Criteria:
Pareto
optimal or Pareto improvement: very conservative, criterion requires that
in any public investment no one is worse off and at least someone is
better off.
Net
welfare improvement: merely
requires that total (present value) benefits
exceed total (present value) costs.
Total improvement of gainers outweighs the
combined setback of the losers, or that B/C ratio >1.
Pareto
improvement is a non-starter, while net welfare improvement RARELY
actually makes the losers WHOLE except in theory.