Social Cost Benefit Analysis (SCBA)
What is Social Cost Benefit Analysis (SCBA)?
Social cost-benefit analysis (SCBA) is a method used to evaluate the economic, social, and environmental impacts of a project or policy. It involves analyzing the costs and benefits of a proposed project or policy and comparing them to determine the net social value of the project or policy.
In SCBA, the costs and benefits of a project or policy are expressed in monetary terms and are measured over a specified time period. This allows for a comparison of the costs and benefits in a common currency, which makes it easier to understand the trade-offs involved in a particular project or policy.
SCBA is often used to assess the feasibility of projects or policies, and to help decision-makers understand the potential trade-offs and implications of different options. It can be used to compare alternative projects or policies and to identify the option that is most likely to provide the greatest net social value.
SCBA is a useful tool for policymakers, but it is not without limitations. It relies on assumptions and estimates, and it can be difficult to quantify and monetize some of the costs and benefits of a project or policy. It is also important to consider non-monetary factors, such as social and environmental impacts, which may not be captured in the analysis.