ENV201H5 Final: Cost Benefit Analysis Required Reading Summary
Document Summary
Cost-benefit analysis seeks to translate all relevant considerations into. Cost benefit analysis (cba), sometimes called benefit cost analysis (bca), is a systematic process for calculating and comparing benefits and costs of a project, decision or government policy (hereafter, project). Cba has two purposes: to determine if it is a sound investment/decision (justification/feasibility), to provide a basis for comparing projects. It involves comparing the total expected cost of each option against the total expected benefits, to see whether the benefits outweigh the costs, and by how much. Use of cost-benefit analysis leads to more efficient allocation of society"s resources by better identifying which potential regulatory actions are worth undertaking and in what fashion. Produces more objective and more transparent government decision- making by making more explicit the assumptions and methods underlying regulatory actions. First, cba cannot produce more efficient decisions because the process of reducing life, health, and the natural world to monetary values is inherently flawed.
