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Cost–benefit analysis and the environment

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  • RAY, ANANDARUP

Abstract

The thrust of the principles enunciated in Arrow et al. is that economic benefits and costs can be a great help in organizing disparate concerns, in identifying issues, and in designing regulatory policies and individual projects with environmental impact. While this true, I must disagree with the authors that 'formal benefit-cost analysis should not be viewed as either necessary or sufficient for designing sensible public policy' (p. 201). At least there can be little doubt that cost-benefit analysis is necessary for sensible policy. I comment below from the perspective of devloping countries.

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  • Ray, Anandarup, 1997. "Cost–benefit analysis and the environment," Environment and Development Economics, Cambridge University Press, vol. 2(2), pages 195-221, May.
    • Handle: RePEc:cup:endeec:v:2:y:1997:i:02:p:195-221_26
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    1. Chavez, Holcer & Nadolnyak, Denis A. & Saravia, Miguel, 2013. "Socioeconomic and Environmental Impact of Development Interventions: Rice Production at the Gallito Ciego Reservoir in Peru," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(1), pages 1-16, February.

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