GesamtnutzenKostenAnalyse

GesamtnutzenKostenAnalyse, often abbreviated as GKN, is a German term that translates to Total Benefit-Cost Analysis or Total Cost-Benefit Analysis. It is a systematic process used to evaluate the economic feasibility and desirability of a project, policy, or investment by comparing its anticipated total benefits against its total costs. The GKN aims to quantify all positive and negative economic impacts over the entire lifecycle of the undertaking.

The methodology involves identifying and measuring all quantifiable benefits, such as increased revenue, cost savings, improved efficiency, or enhanced environmental quality. Simultaneously, all associated costs are identified and measured, including initial investment, operational expenses, maintenance, and potential negative externalities. Benefits and costs that are difficult to quantify in monetary terms are often addressed through qualitative assessments or by assigning proxy values.

The core principle of GKN is to determine if the sum of the benefits outweighs the sum of the costs. This is typically expressed as a ratio, where a value greater than one indicates that the benefits exceed the costs. Alternatively, the net benefit (total benefits minus total costs) can be calculated, with a positive net benefit signifying a favorable outcome. GKN is widely applied in public sector decision-making for infrastructure projects, environmental regulations, and social programs, as well as in the private sector for investment appraisal and strategic planning. It provides a framework for rational decision-making by offering a comprehensive economic perspective on the potential outcomes.