Article: Benefit-Cost Analysis

BENEFIT-COST ANALYSIS

Benefit-cost analysis is a technique for assessing the desirability of government projects and policies. The basic idea is simple: Consider alternative policies and identify the one that yields the greatest net gain to society. Benefit-cost analysis has been widely used to compare the positive and negative aspects measured in terms of reduced mortality, morbidity, property damage, and losses to the natural environment of policies that affect public health and the environment.

Benefit-cost analysis has been widely used in the design of environmental policies and to help resolve disputes under the U.S. legal system. Under the Comprehensive Environmental ...

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