cost-benefit analysis


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Related to cost-benefit analysis: Cost-effectiveness analysis

Cost-benefit analysis

A method of evaluating projects or investments by comparing the present value or annual value of expected benefits to costs; the practical embodiment of discounted cash flow analysis; a useful technique for making transparent the benefits of upfront investments in sustainable design features or technologies.

cost-benefit analysis

a technique for appraising the total economic costs and benefits (and ideally the total social costs and benefits expressed as economic costs) arising from any economic and social activity, especially new projects. Hitherto, the technique has been mainly used to appraise new, large, public projects. But, in an increasingly ecologically conscious era, the proposal now is that many more existing economic and social activities should be subject to full cost-benefit analysis, with many more costs, e.g. environmental, also included to a fuller extent than previously Cost-benefit analysis is far from being a straightforward technique, however, and much depends on the assumptions on which a costing is made. Careful attention has always to be given to the range of external costs and the range of benefits to be included in the calculations, as well as to the basis on which these can be costed. The results usually leave scope for controversy.

cost-benefit analysis

An analysis of a construction contract with the objective of identifying all the included costs and evaluating their benefits.
References in periodicals archive ?
On cost-benefit analysis, many industry groups have largely abandoned their commitment to weighing environmental benefits against economic costs.
The bottom line is while the use of cost-benefit analysis is growing, states should be making wider and better use of this approach.
In recent years, state officials have become increasingly interested in cost-benefit analysis in large part because of the experience in Washington.
To suggest that a cost-benefit analysis ought to be the sole--or even the most important--part of a decision is to attempt to turn leaders into spreadsheet jockeys.
Although fervent in their critique of cost-benefit analysis as currently practiced, Adler and Posner see considerable hope for its future use, if only the overall goal of the analysis could be reconsidered.
Under former administrator John Graham, the OIRA emphasized the importance of cost-benefit analysis when reviewing proposed federal agency regulations that had to funnel through his office.
5) Discounting assumes that people prefer to have a benefit now instead of in the future and incorporates this preference into cost-benefit analysis by reducing the present-day valuation of a future benefit.
An RIA usually is a separate document, but in this case, the cost-benefit analysis is part of the overall proposed rule.
But if there is only one patient there, Lott recommended a cost-benefit analysis to see whether it's cheaper to pay to send that patient to another hospital than to maintain full staffing.
OMB has proposed changes that require agencies to do additional cost-benefit analysis of rules, use different calculation to arrive at their estimates and offer regulatory alternatives, Specifically, the agency is seeking input on how they should evaluate the costs of new rules on the time, convenience, economic productivity and privacy of Americans.
It includes chapters on the business case for electronic records retention; a cost-benefit analysis for retaining vs.
Boyce, Carol Hansen Montgomery, and Carol Tenopir provide a cost-benefit analysis of library electronic collections and services.

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