Benefit-Cost Analysis: traps, challenges and best practice

Convenor: Prof David Pannell
Time: (TBA) PM, Monday
Duration: 3 hours

This workshop addresses a range of challenges and complexities that arise when applying BCA in practice. Drawing from his 12-week online micro-credential course on BCA, David will discuss a selection of these challenges and propose appropriate ways to address them. Issues from which the topics covered will be drawn include:

  • Avoiding over-optimism in BCA inputs
  • Multiple methods for addressing uncertainty in BCA
  • Approaches to sensitivity analysis - Representing the risk of project failure
  • The use of cost of repair as a way to quantify benefits
  • Whether to include job creation as a benefit, and if so, how?
  • Whether and how to include the excess burden of taxation
  • Decision criteria (in brief, as the issue is covered in detail in a Mini-Symposium during the main conference)
  • Comparing projects of different durations