IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-319-04486-6_11.html
   My bibliography  Save this book chapter

Cost-Benefit Analysis

In: Risk - A Multidisciplinary Introduction

Author

Listed:
  • Jutta Roosen

    (Technische Universität München, Chair of Marketing and Consumer Research, TUM School of Management)

Abstract

Every society is facing a number of risks and their regulation requires many considerations. From an economic standpoint, it can be said that risks impose a cost on society. Avoiding and regulating risks equally engenders costs. In order to help public decision makers come to terms with these trade-offs, economists have developed the method of cost-benefit analysis. It is based on the simple idea that things are worth doing when the benefits from doing them are greater than their costs. As simple as this basic idea is, as tricky and controversial are the implications of putting it into practice. Issues of controversy relate to valuing environmental benefits, determining the value of human health and life, balancing the interest of current and future generations by discounting, and dealing with the biases of subjective risk perception when defining a rational risk policy. This chapter will introduce the basic assumptions underlying cost-benefit analysis and the procedures involved in conducting one.

Suggested Citation

  • Jutta Roosen, 2014. "Cost-Benefit Analysis," Springer Books, in: Claudia Klüppelberg & Daniel Straub & Isabell M. Welpe (ed.), Risk - A Multidisciplinary Introduction, edition 127, chapter 0, pages 309-331, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-04486-6_11
    DOI: 10.1007/978-3-319-04486-6_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-319-04486-6_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.