A municipal council is evaluating four proposed local infrastructure projects. Due to a restricted budget, only one project can be funded. The council's economists have estimated the lifetime private and external costs and benefits of each scheme, as detailed in the table below:
| Urban Wetland Park (£ million) | Municipal Waste-to-Energy Plant (£ million) | Subsidised Rooftop Solar Scheme (£ million) | Commuter Cycle Superhighway (£ million) | |
|---|---|---|---|---|
| Private benefits | 15 | 180 | 45 | 110 |
| Private costs | 35 | 140 | 60 | 130 |
| Positive externalities | 95 | 30 | 115 | 125 |
| Negative externalities | 5 | 85 | 25 | 15 |
Which project should the council adopt if its objective is to maximise net social welfare?
Urban Wetland Park
Municipal Waste-to-Energy Plant
Subsidised Rooftop Solar Scheme
Commuter Cycle Superhighway
