Cost benefit analysis - key features and future directions
Insights
Arts and Culture, Education, Housing, Retail, Transport
Cost-Benefit Analysis (CBA) has played a critical role in public policy for more than 50 years. Everyone concerned with the public policy can benefit from being aware of the key features of CBA and importantly, its limitations and how it may evolve. CBA goes beyond financial analysis which considers direct monetary costs and revenues. It instead, enables policymakers to assess whether a policy initiative or project will provide a net community benefit. CBA also takes into account that the (limited) resources deployed in implementing the initiative or project have alternative productive uses.