Cost–benefit analysis

Dilvin Taskin

Chapter 20 in Elgar Encyclopedia of Energy Economics, 2025, pp 73-74 from Edward Elgar Publishing

Abstract: Cost and benefit analysis (CBA) is a widely used approach for assessing the costs and benefits of projects and investments. In the energy sector, CBA helps evaluate the economic feasibility of energy-related initiatives such as renewable energy investments and energy efficiency measures. By comparing costs and benefits, decision-makers can make informed choices. However, CBA has limitations, including the need for longer time horizons and careful selection of reference scenarios. Despite these limitations, CBA remains attractive for addressing budget constraints and maximizing societal welfare and economic efficiency.

Keywords: Cost and Benefit; Net Present Value (NPV); Energy Projects (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035310364
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