Cost benefit analysis

{
  "id": "MLC-T-ENV-006778",
  "term": "Cost benefit analysis",
  "field": "Environment",
  "term_source": "Cost Benefit Analysis",
  "definitions": [
    "An estimate of the total equivalent money value of the benefits and costs to the community of projects. A CBA is used to establish whether a given project is worthwhile.",
    "1. An analysis that compares present values of all benefits less those of related costs when benefits can be valued in dollars the same way as costs. A cost-benefit analysis is performed in order to select the alternative that maximizes the benefits of a program.\n\n2. A formal quantitative and sometimes qualitative evaluation of the benefits to be derived from a decision or action compared to the costs incurred by implementing that decision or action. Benefits and costs may include both market values and nonmarket values.\n\n3. An evaluation of the costs which would be incurred versus the overall benefits of a proposed action, such as the establishment of an acceptable exposure level of a pollutant.\n\n4. A quantitative evaluation of the costs which would have incurred by implementing an environmental regulation versus the overall benefits to society of the proposed action.\n\n5. A comparison of alternative interventions in which costs and outcomes are quantified in common monetary units.\n\n6. A formal quantitative procedure comparing costs and benefits of a proposed project or act under a set of pre-established rules. To determine a rank ordering of projects to maximize rate of return when available funds are unlimited, the quotient of benefits divided by costs is the appropriate form; to maximize absolute return given limited resources, benefits-costs is the appropriate form.",
    "1. A quantitative evaluation of the costs which would have incurred by implementing an environmental regulation versus the overall benefits to society of the proposed action.\n\n2. Provides a comparison of the expected costs of implementing or not implementing various aspects of a plan versus the benefits of implementation."
  ],
  "abbreviation": "CBA",
  "subject": [
    "Sustainability and green living",
    "Social and economic factors",
    "Climate change"
  ],
  "references": [
    "Glossary of Sustainable Manufacturing Terms",
    "Program Evaluation Glossary",
    "Core Ecosystem Services Research Program Standard Lexicon",
    "EPA 2004; Thesaurus of Terms Used in Microbial Risk Assessment",
    "EPA 2005b; Thesaurus of Terms Used in Microbial Risk Assessment",
    "NLM/NICHSR 2004; Thesaurus of Terms Used in Microbial Risk Assessment",
    "RAIS 2004, SRA 2004; Thesaurus of Terms Used in Microbial Risk Assessment",
    "Terms of Environment",
    "Resilience and Adaptation in New England (RAINE) Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/cost-benefit-analysis/"
}