Costbenefit analysis is essential for decision-making from "summary" of Economics of the Environment by Robert N. Stavins
Cost-benefit analysis is a fundamental tool for decision-making in the field of environmental economics. This analytical approach allows policymakers and stakeholders to quantify and compare the costs and benefits of various policy options. By systematically evaluating the potential costs and benefits of different decisions, decision-makers can make more informed choices that maximize societal welfare. In essence, cost-benefit analysis helps decision-makers answer the question: "Is the benefit of a particular policy or project worth the cost?" This framework enables decision-makers to assess the trade-offs involved in different courses of action and determine the most efficient allocation of resources. By assigning monetary values to both the costs and benefits of a decision, cost-benefit analysis provides a common metric for evaluating the desirability of different policy options. Moreover, cos...
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