3 ms·
Here’s a definition of cost benefit analysis: A cost-benefit analysis is the process of comparing the projected or estimated costs and benefits (or opportuniti
by richk449 4y ago
Here’s a definition of cost benefit analysis:
A cost-benefit analysis is the process of comparing the projected or estimated costs and benefits (or opportunities) associated with a project decision to determine whether it makes sense from a business perspective.
Generally speaking, cost-benefit analysis involves tallying up all costs of a project or decision and subtracting that amount from the total projected benefits of the project or decision. (Sometimes, this value is represented as a ratio.)
That is simply not the same as applying a tax or surcharge to something to internalize an externality.
- dahart 4y agoI agree with that; you’re just not thinking all the way through what it means to do what you suggested, assign a cost to a scarce environmental resource in order to avoid the kind of negative future consequences we’re discussing here. In this context, the premise behind assigning such a cost requires a cost benefit analysis.