kostenbatenanalyses

A cost-benefit analysis (CBA) is a systematic approach to estimating the strengths and weaknesses of a project or policy by comparing its total expected costs with its total expected benefits, typically expressed in monetary terms. In German-speaking contexts, the term Kosten-Nutzen-Analyse is used.

The analysis aims to inform decision making about whether to proceed, how to allocate scarce resources, and how a policy ranks relative to alternatives. It involves defining the scope, identifying alternatives, and cataloging all relevant costs and benefits over a chosen time horizon.

Key steps include valuing costs and benefits, discounting future amounts to present value, and calculating metrics such as net present value (NPV) or the benefit-cost ratio (BCR). Sensitivity analyses test how results respond to changes in assumptions, data, or the discount rate.

Valuation can cover direct financial effects as well as broader social and environmental impacts, such as health outcomes, productivity changes, risk reduction, or ecosystem services. When some effects are hard to monetize, analysts may use shadow prices or qualitative assessments.

Applications are common in public policy, transport, energy, environmental management, and healthcare. Critics point to challenges in monetizing intangible effects, equity considerations, data limitations, and potential biases in selecting parameters or the discount rate.

Results are reported as net present value and/or a benefit-cost ratio to guide decisions. A positive NPV or a BCR greater than one suggests benefits exceed costs; however, decisions often consider distributional impacts and uncertainty beyond the numerical answer.

Related methods include cost-effectiveness analysis and multi-criteria decision analysis, which may be used when monetization is inappropriate or insufficient to capture policy goals.