Cost-Benefit Analysis (Cba)

1 Introduction......................................................................................................................................1/27 2 Methodology....................................................................................................................................2/27 3 Process.............................................................................................................................................2/27 3.1 Categories of Costs.................................................................................................................2/27 3.2 Categories of Benefits............................................................................................................3/27 3.3 Estimation of the Benefits of a Policy....................................................................................5/27 3.4 Benefit Transfer....................................................................................................................16/27 4 Review...........................................................................................................................................17/27 4.1 Evaluation results.................................................................................................................17/27 4.2 Experiences..........................................................................................................................17/27 4.3 Combinations.......................................................................................................................18/27 4.4 Strengths and weaknesses of CBA.......................................................................................18/27 i Cost−benefit analysis 1/1 Anna Alberini (aalberini arec.umd.edu) 1 Introduction A cost−benefit analysis (CBA) can be defined as an economic technique applied to public decision−making that attempts to quantify the advantages (benefits) and disadvantages (costs) associated with