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Cost–Benefit Analysis: A Decision-Support Tool or a Venue for Contesting Ecosystem Knowledge?

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  • Neal Hockley

    (School of Environment, Natural Resources and Geography, Bangor University, Bangor LL57 2UW, Wales)

Abstract

Managing ecosystems for multiple benefits and stakeholders is a formidable challenge requiring diverse knowledge to be discovered, transmitted, and aggregated. Cost–benefit analysis (CBA) is advocated as a theoretically grounded decision-support tool, but in practice it frequently appears to exert little influence. To understand this puzzle, I consider ecosystem knowledge and CBA from both the demand and supply sides. I argue that all ecosystem knowledge is contestable, which restricts the influence of technocratic tools like CBA. On the demand side, democratic mechanisms shape decision makers' motivations and incentives, but also provide a substitute for technocratic evidence. Supply-side factors limiting the influence of CBA include the scarcity of decision-pertinent evidence and the uncertain meaning and usefulness of CBA. Demand-side factors are resistant to change; but taking account of them, I suggest some supply-side reforms, arguing that CBA is best regarded not as a tool but as a venue where ecosystem knowledge is aggregated and contested.

Suggested Citation

  • Neal Hockley, 2014. "Cost–Benefit Analysis: A Decision-Support Tool or a Venue for Contesting Ecosystem Knowledge?," Environment and Planning C, , vol. 32(2), pages 283-300, April.
    • Handle: RePEc:sae:envirc:v:32:y:2014:i:2:p:283-300
    DOI: 10.1068/c1384j
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    References listed on IDEAS

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    1. Carolus, Johannes Friedrich & Hanley, Nick & Olsen, Søren Bøye & Pedersen, Søren Marcus, 2018. "A Bottom-up Approach to Environmental Cost-Benefit Analysis," Ecological Economics, Elsevier, vol. 152(C), pages 282-295.
    2. Irvine, Katherine N. & O’Brien, Liz & Ravenscroft, Neil & Cooper, Nigel & Everard, Mark & Fazey, Ioan & Reed, Mark S. & Kenter, Jasper O., 2016. "Ecosystem services and the idea of shared values," Ecosystem Services, Elsevier, vol. 21(PB), pages 184-193.
    3. Kenter, Jasper O., 2016. "Integrating deliberative monetary valuation, systems modelling and participatory mapping to assess shared values of ecosystem services," Ecosystem Services, Elsevier, vol. 21(PB), pages 291-307.
    4. Bartkowski, Bartosz & Lienhoop, Nele, 2018. "Beyond Rationality, Towards Reasonableness: Enriching the Theoretical Foundation of Deliberative Monetary Valuation," Ecological Economics, Elsevier, vol. 143(C), pages 97-104.
    5. Saarikoski, Heli & Mustajoki, Jyri & Barton, David N. & Geneletti, Davide & Langemeyer, Johannes & Gomez-Baggethun, Erik & Marttunen, Mika & Antunes, Paula & Keune, Hans & Santos, Rui, 2016. "Multi-Criteria Decision Analysis and Cost-Benefit Analysis: Comparing alternative frameworks for integrated valuation of ecosystem services," Ecosystem Services, Elsevier, vol. 22(PB), pages 238-249.
    6. Cooper, Nigel & Brady, Emily & Steen, Helen & Bryce, Rosalind, 2016. "Aesthetic and spiritual values of ecosystems: Recognising the ontological and axiological plurality of cultural ecosystem ‘services’," Ecosystem Services, Elsevier, vol. 21(PB), pages 218-229.

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