A Partial Review of Seven Official Guidelines for Cost-Benefit Analysis. Issue 2 (27th March 2020)

• Record Type: Journal Article
• Authors: Abelson, Peter
• Is Part Of: Journal of benefit-cost analysis. Volume 11:Issue 2(2020)
• Page Start: 272
• Page End: 293
• Publication Date: 2020-03-27
• Subjects: additional economic benefits, -- benefit-cost ratios, -- marginal excess tax burden, -- real values, -- standing, -- social discount rate, -- treatment of risk, -- willingness to accept values.; H34; Cost effectiveness -- Periodicals; 658.1554
• DOI: 10.1017/bca.2020.3
• Languages: English
• ISSNs: 2194-5888

Abstract

Abstract: This paper reviews seven contemporary official guidelines to cost-benefit analysis (CBA) with respect to eight major cost-benefit issues drawing on the latest edition of the major CBA textbook for guidance, although not complete authority. The guidelines are those by UK Treasury, European Commission, U.S. Environmental Protection Agency, New Zealand Treasury, Infrastructure Australia, NSW State Treasury, and Victorian State Department of Treasury and Finance. The eight major issues discussed are the issue of standing, core valuation principles, the scope of CBA with reference to potential additional economic benefits, changes in real values over time, the marginal excess tax burden, the social discount rate, use of benefit-cost ratios, and treatment of risk. While all the guidelines are quality guides to CBA, the paper finds that there is room for improved discussion and practice at various points in each of these guidelines.