From Green Whiskers

In Defence of Cost Benefit Analysis

Posted in: Opinion pieces

By Henry Ergas
September 10, 2009

In this paper for "Agenda" (Volume 16, Number 4) Henry compares cost-benefit analysis (CBA) to multi-criteria analysis (MCA). Henry reviews the nature of the two approaches and considers the criticisms that have been made of CBA. He concludes that these criticisms largely lack merit, and that even to the extent to which they are meritorious, they provide no justification for relying on MCA. He concludes by expressing his concerns about the growing role of MCA in Australian project appraisal, which is symptomatic of a broader move away from sound policy evaluation.

Attached file(s):

In Defence of Cost-Benefit Analysis.pdf