A form of economic analysis in which costs and benefits are
converted into monetary values for comparison
Remediation problems can be complicated. There may be a
range of options, the most appropriate of whichis not so
obvious to decision-makers. The aim of cost benefit analysis
(CBA)is to consider the diverse range of impacts that may
differ from one proposed solution to another such as the
effect on human health, the environment, the land use, and
issues of stakeholder concern and acceptability by assigning
values to each impact in common units.
Monetary or quantitative values may not be appropriate
for all issues, so CBA can involve a combination of qualitative
and quantitative methods. Many practioners use a wide definition
of CBA, encompassing a range of formal and semi-formal approaches.
It is important to include a sensitivity analysis step,
particularly where this encourages decision-makers to
question their judgements and assumptions through the
eyes of other stakeholders.
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