Cost-Benefit Analysis

A systematic method for evaluating a project, policy or regulation by identifying, quantifying (when possible) and discounting expected social costs and benefits to a common present‑value metric, and comparing their net present value or benefit‑cost ratio to inform decisions.

An economic appraisal method that identifies, quantifies (when possible), monetizes and discounts the expected costs and benefits of a project or policy to compare their present values and inform decisions; it includes sensitivity and distributional considerations where relevant.