Project evaluation with democratic decision-making: What does cost–benefit analysis really measure?

Karine Nyborg

Ecological Economics, 2014, vol. 106, issue C, 124-131

Abstract: It is often argued that projects involving public good changes should be chosen on the basis of monetary valuation and cost–benefit analysis (CBA). However, CBA is not value-free. When used to measure welfare, it is based on highly controversial value judgements. When used to measure efficiency, it is based on assumptions of limited relevance to democratic decision-making processes. CBA measures total net willingness to pay, neither more nor less. While interesting in its own right, the normative significance of this indicator is not obvious.

Keywords: Cost–benefit analysis; Ethics; Environmental quality; Democratic decision-making (search for similar items in EconPapers)
JEL-codes: A11 D31 D61 D63 D7 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:106:y:2014:i:c:p:124-131

DOI: 10.1016/j.ecolecon.2014.07.009

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