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Cost–Benefit Analysis

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  • Johansson,Per-Olov
  • Kriström,Bengt

Abstract

This Element on cost-benefit analysis provides a summary of recent theoretical and empirical developments and summarizes state-of-the-art stated-preference and revealed-preference valuation methods. The Element discusses how to assess small (or marginal) as well as large (or non-marginal) projects that have a significant impact on prices and/or other economic variables. It also discusses distortions like taxes, market power, and sticky prices. In addition, risk/uncertainty is considered. A novel feature is the elaboration on flexible evaluation rules for reasonably small projects. Conventional point-estimates of projects should be used with care, because they typically give biased results.

Suggested Citation

  • Johansson,Per-Olov & Kriström,Bengt, 2018. "Cost–Benefit Analysis," Cambridge Books, Cambridge University Press, number 9781108462938, November.
    • Handle: RePEc:cup:cbooks:9781108462938
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    Cited by:

    1. Victor Champonnois & Olivier Chanel, 2023. "Accounting for subsistence needs in non-market valuation: a simple proposal," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 66(5), pages 1037-1060, April.
    2. Cole, Scott & Moksnes, Per-Olav & Söderqvist, Tore & Wikström, Sofia A. & Sundblad, Göran & Hasselström, Linus & Bergström, Ulf & Kraufvelin, Patrik & Bergström, Lena, 2021. "Environmental compensation for biodiversity and ecosystem services: A flexible framework that addresses human wellbeing," Ecosystem Services, Elsevier, vol. 50(C).

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