Hyötysanalyysi

Hyötysanalyysi, often translated as benefit-cost analysis or cost-benefit analysis, is an economic tool used to evaluate the desirability of a project or policy. It involves systematically comparing the total expected benefits of a proposed action to its total expected costs. The fundamental principle is to determine if the benefits outweigh the costs.

The process typically begins with identifying all potential benefits, which can be tangible, like increased revenue or reduced expenses, or intangible, such as improved public health or environmental protection. These benefits are then quantified and assigned a monetary value where possible. Similarly, all associated costs are identified, including direct expenses, opportunity costs, and any negative externalities.

Once both benefits and costs are estimated, they are often discounted to their present values, accounting for the time value of money. This ensures that future costs and benefits are valued appropriately relative to present ones. The analysis then calculates various metrics, such as the net present value (benefits minus costs), the benefit-cost ratio (benefits divided by costs), or the internal rate of return.

A project or policy is generally considered economically viable if its total benefits exceed its total costs, indicated by a positive net present value or a benefit-cost ratio greater than one. Hyötysanalyysi is widely used in public sector decision-making for infrastructure projects, environmental regulations, and social programs, as well as in the private sector for investment appraisal. It provides a structured framework for making informed choices by assessing economic efficiency.