The social cost-benefit analysis
Performing a cost-benefit analysis (CBA) in companies that are in the business of making money is logical. But what about public-sector entities? This article discusses estimating the value of benefits of public-sector projects. It explains the terms social CBA and economic analysis, which are used in the public sector. It overviews valuing the benefits of public-sector projects and identifies three variations: willingness to pay (WTP); willingness to spend (WTS), and willingness to accept (WTA). The article uses the Sanjay Gandhi National Park in Mumbai, India, and a soil contamination project in the Netherlands to show how social CBA benefits public-sector projects. It also mentions the challenges and drawbacks with these analyses.