Cost Benefit History: How to Trace the Origins and Evolution of Cost Benefit Analysis

1. What is Cost-Benefit Analysis and Why is it Important?

cost-benefit analysis (CBA) is a method of evaluating the economic and social impacts of a project, policy, or decision by comparing its costs and benefits. It is widely used in public and private sectors to support decision-making and resource allocation. CBA can help answer questions such as: Is the project worth doing? What are the best alternatives? How can the project be improved? What are the risks and uncertainties involved?

CBA is important for several reasons. First, it can help identify and quantify the positive and negative effects of a project on different stakeholders, such as individuals, groups, or society as a whole. Second, it can help compare and rank different options based on their net benefits, which is the difference between benefits and costs. Third, it can help assess the efficiency and equity of a project, which means how well it uses scarce resources and how fairly it distributes its impacts. Fourth, it can help communicate and justify the rationale and results of a project to the public and other decision-makers.

There are many aspects and challenges involved in conducting a CBA. Some of them are:

1. Defining the scope and objectives of the analysis. This involves specifying the project, its alternatives, the time horizon, the perspective, and the criteria for evaluation.

2. Identifying and measuring the costs and benefits of the project. This involves estimating the direct and indirect, tangible and intangible, and market and non-market impacts of the project in monetary terms.

3. Discounting the future costs and benefits to their present values. This involves applying a discount rate that reflects the time value of money and the opportunity cost of capital.

4. calculating the net present value (NPV) and the benefit-cost ratio (BCR) of the project. These are the main indicators of the project's economic viability and attractiveness. NPV is the sum of the discounted costs and benefits, and BCR is the ratio of the discounted benefits to the discounted costs.

5. performing a sensitivity analysis and a risk analysis. These involve testing the robustness and reliability of the results by varying the key assumptions and parameters, and by incorporating the probabilities and uncertainties of the outcomes.

6. Presenting and interpreting the results of the analysis. This involves reporting the main findings, limitations, and implications of the analysis, and providing recommendations and conclusions.

CBA has a long and rich history that can be traced back to the 18th century. Some of the milestones and pioneers of CBA are:

- In 1772, Benjamin Franklin published a letter titled "Hints for those that would be Rich", in which he suggested a simple method of comparing the advantages and disadvantages of a proposed action by making a list of pros and cons.

- In 1844, Jules Dupuit, a French engineer and economist, wrote an article titled "On the Measurement of the Utility of Public Works", in which he introduced the concept of consumer surplus and the marginal analysis of benefits and costs.

- In 1936, the US Army Corps of Engineers adopted the "Flood Control Act", which required that the benefits of flood control projects exceed their costs. This was the first formal application of CBA in public policy in the US.

- In 1950, Alan Williams, a British economist and health policy analyst, published a paper titled "The Appraisal of Projects: A Simple Layman's Guide", in which he presented a comprehensive and practical framework for CBA, including the concepts of opportunity cost, shadow price, and social discount rate.

- In 1962, Arnold Harberger, an American economist and public finance expert, published a paper titled "The Measurement of Waste", in which he developed the theory and methods of measuring the deadweight loss and the excess burden of taxation and market distortions.

- In 1971, Ian Little and James Mirrlees, two British economists and Nobel laureates, published a book titled "Project Appraisal and Planning for Developing Countries", in which they provided a systematic and rigorous approach to CBA for developing countries, taking into account the issues of income distribution, foreign exchange, and social welfare.

CBA is a powerful and useful tool for evaluating and improving the economic and social outcomes of projects, policies, and decisions. However, it is not a perfect or a neutral technique. It involves many assumptions, judgments, and uncertainties that can affect the validity and reliability of the results. Therefore, it is important to use CBA with caution and critical thinking, and to complement it with other methods and perspectives. CBA is not a substitute for political and ethical deliberation, but rather a support and a guide for informed and rational decision-making.

2. From Ancient Civilizations to the Enlightenment

Cost-benefit analysis (CBA) is a method of evaluating the pros and cons of different alternatives based on their expected costs and benefits. CBA is widely used in various fields such as economics, engineering, public policy, and environmental studies. But where did this method come from? How did it evolve over time? In this section, we will explore the origins of CBA from ancient civilizations to the Enlightenment era. We will see how different cultures and thinkers applied the principles of CBA to various problems and decisions. We will also examine the limitations and challenges of CBA in different historical contexts.

Here are some of the main points we will cover in this section:

1. Ancient Civilizations: CBA can be traced back to some of the oldest civilizations in human history, such as Mesopotamia, Egypt, China, India, and Greece. These civilizations used CBA to plan and execute large-scale projects such as irrigation systems, pyramids, canals, roads, and temples. They also used CBA to assess the feasibility and desirability of wars, alliances, trade, and taxation. For example, the ancient Mesopotamian king Hammurabi (1792-1750 BC) is known for his code of laws, which included provisions for compensating victims of injuries and damages based on the severity and type of harm. This can be seen as an early form of CBA that aimed to balance the costs and benefits of justice and deterrence.

2. Medieval Period: CBA continued to be used in the medieval period by various civilizations and regions, such as the Islamic world, Europe, and the Americas. CBA was applied to issues such as agriculture, commerce, education, health, and religion. For example, the Islamic scholar Ibn Khaldun (1332-1406) developed a theory of economic development that emphasized the role of population, production, taxation, and government spending. He argued that excessive taxation and corruption would reduce the incentives and productivity of the people, leading to economic decline and social unrest. This can be seen as an early application of CBA to macroeconomic policy and public finance.

3. Renaissance and Reformation: CBA was influenced by the intellectual and cultural movements of the Renaissance and the Reformation, which challenged the authority and dogma of the medieval church and promoted humanism, individualism, and rationalism. CBA was used to evaluate the costs and benefits of social and political changes, such as the Protestant Reformation, the Scientific Revolution, and the Age of Exploration. For example, the Italian philosopher and politician Niccolo Machiavelli (1469-1527) wrote The Prince, a treatise on how to acquire and maintain political power. He advised rulers to weigh the costs and benefits of different actions and strategies, such as cruelty, generosity, deception, and honesty, based on their effects on the stability and security of the state. This can be seen as an early application of CBA to political science and ethics.

4. Enlightenment: CBA reached its peak of development and popularity in the Enlightenment era, which was characterized by the emergence of modern science, philosophy, and economics. CBA was used to analyze and improve the efficiency and welfare of society, such as the optimal allocation of resources, the distribution of income and wealth, and the provision of public goods and services. For example, the French philosopher and mathematician Blaise Pascal (1623-1662) formulated the famous Pascal's Wager, which is a CBA argument for believing in God. He argued that the expected benefit of believing in God (eternal salvation) is infinitely greater than the expected cost (giving up some worldly pleasures), regardless of the probability of God's existence. This can be seen as an early application of CBA to decision theory and theology.

3. From the Industrial Revolution to the World Wars

The development of cost-benefit analysis (CBA) as a tool for evaluating public policies and projects can be traced back to the period between the Industrial Revolution and the World Wars. This was a time of rapid economic and social changes, as well as major conflicts and crises, that posed new challenges and opportunities for governments and societies. In this section, we will explore how different thinkers and practitioners from various disciplines and backgrounds contributed to the emergence and evolution of CBA, and how they applied it to various domains and issues. We will also examine the strengths and limitations of CBA, and how it was influenced by the historical and intellectual context of its time. Here are some of the main points we will cover:

1. The origins of CBA can be linked to the rise of classical economics and utilitarianism in the 18th and 19th centuries. These schools of thought advocated for the maximization of social welfare and happiness, and the use of rational and scientific methods to measure and compare the costs and benefits of different actions and alternatives. Some of the early pioneers of CBA were Adam Smith, Jeremy Bentham, john Stuart mill, and Alfred Marshall, who applied CBA to issues such as taxation, public goods, externalities, and market failures.

2. The Industrial Revolution and the expansion of railways, canals, and other public works in the 19th and early 20th centuries created a demand for more systematic and rigorous methods of assessing the economic and social impacts of these projects. Some of the influential figures who developed and applied CBA to these domains were Jules Dupuit, Arthur Pigou, Frank Ramsey, and Harold Hotelling. They introduced concepts such as consumer surplus, marginal social cost, net present value, and discounting, and developed mathematical and graphical techniques to estimate and compare the costs and benefits of different projects and policies.

3. The World Wars and the Great Depression of the 20th century posed new challenges and opportunities for CBA, as governments faced unprecedented levels of spending, debt, and intervention in the economy and society. Some of the key developments and applications of CBA during this period were John Maynard Keynes's theory of fiscal policy and multiplier effect, Irving Fisher's theory of interest and capital, Ragnar Frisch and Jan Tinbergen's econometric models and national accounting systems, and John von Neumann and Oskar Morgenstern's game theory and expected utility theory. These contributions expanded the scope and sophistication of CBA, and enabled it to address issues such as macroeconomic stabilization, public debt, welfare, and strategic behavior.

4. The post-war period and the cold War era witnessed the further development and diffusion of CBA, as it became a standard tool for evaluating public policies and projects in various sectors and countries. Some of the notable examples and innovations of CBA during this period were Robert McNamara and Charles Hitch's use of CBA for defense planning and budgeting in the US, Alan Williams and Richard Musgrave's use of CBA for health care and public finance in the UK, Kenneth Arrow and Robert Lind's use of CBA for environmental and social issues in the US, and Amartya Sen and Mahbub ul Haq's use of CBA for human development and poverty reduction in developing countries. These applications demonstrated the versatility and relevance of CBA, and also revealed its limitations and controversies.

4. From the Cold War to the Environmental Movement

Cost-benefit analysis (CBA) is a widely used technique for evaluating the economic and social impacts of public policies and projects. However, CBA is not a neutral or objective tool; it reflects the values, assumptions, and interests of its practitioners and users. In this section, we will explore some of the major challenges that CBA faced from the Cold War to the environmental movement, and how they shaped its development and application. We will examine the following aspects of CBA:

1. The role of CBA in the Cold War. CBA emerged as a tool for rational decision-making in the context of the nuclear arms race and the threat of global annihilation. cba was used to compare the costs and benefits of different strategies of deterrence, defense, and disarmament. However, CBA also faced criticism for its ethical and methodological limitations, such as how to measure the value of human lives, how to account for uncertainty and risk, and how to deal with moral and political dilemmas.

2. The influence of CBA on the welfare state. CBA was also applied to various social and economic policies, such as health, education, transportation, and urban planning. CBA was seen as a way to improve the efficiency and effectiveness of public spending and to justify the expansion of the welfare state. However, CBA also encountered resistance from those who questioned its assumptions and implications, such as how to define and measure welfare, how to distribute costs and benefits across society, and how to balance equity and efficiency.

3. The challenge of CBA from the environmental movement. CBA faced a new and formidable challenge from the rise of the environmental movement in the 1960s and 1970s. Environmentalists criticized CBA for its narrow and anthropocentric view of nature, its disregard for ecological and ethical values, and its failure to capture the complexity and uncertainty of environmental problems. Environmentalists proposed alternative approaches, such as the precautionary principle, the polluter pays principle, and the intrinsic value of nature. CBA had to adapt and incorporate new concepts and methods, such as environmental valuation, discounting, and sustainability.

5. From Public Policy to Private Sector

Cost-benefit analysis (CBA) is a widely used technique for evaluating the economic and social impacts of various decisions, projects, policies, and programs. CBA compares the benefits and costs of an intervention in monetary terms, and calculates the net present value (NPV) or benefit-cost ratio (BCR) to determine its feasibility and efficiency. CBA can be applied to a wide range of domains, from public policy to private sector, and can help decision-makers to choose the best alternative among several options, or to justify the need for a particular intervention. In this section, we will explore some of the main applications of CBA in different fields, and highlight some of the challenges and limitations of this method.

Some of the applications of CBA are:

1. public policy and social welfare: CBA can be used to assess the impacts of various public policies and programs on the welfare of society, such as health, education, environment, transportation, security, etc. For example, CBA can help to evaluate the effectiveness of a vaccination program, the benefits of reducing air pollution, the costs of building a new highway, or the trade-offs between different energy sources. CBA can also help to prioritize the allocation of public resources, by ranking the projects or policies according to their NPV or BCR. However, CBA in this domain faces some challenges, such as measuring and monetizing the intangible benefits and costs, accounting for the distributional effects and equity issues, dealing with uncertainty and risk, and incorporating the preferences and values of the stakeholders.

2. Private sector and business: CBA can be used to analyze the profitability and viability of various business decisions, such as investment, production, marketing, pricing, etc. For example, CBA can help to determine the optimal level of output, the optimal mix of inputs, the optimal price to charge, or the optimal location to operate. CBA can also help to compare the returns and risks of different investment options, such as stocks, bonds, real estate, etc. However, CBA in this domain faces some challenges, such as estimating the future cash flows and discount rates, accounting for the opportunity costs and externalities, dealing with the market imperfections and competition, and incorporating the behavioral and psychological factors.

3. Personal and household: CBA can be used to make rational and informed choices in various aspects of personal and household life, such as education, career, health, consumption, saving, etc. For example, CBA can help to decide whether to pursue higher education, whether to switch jobs, whether to buy or rent a house, whether to buy or lease a car, whether to save or spend, etc. CBA can also help to evaluate the benefits and costs of different lifestyle choices, such as diet, exercise, smoking, etc. However, CBA in this domain faces some challenges, such as measuring and monetizing the subjective benefits and costs, accounting for the time and effort involved, dealing with the uncertainty and variability, and incorporating the emotions and preferences.

6. From Ethical Dilemmas to Methodological Issues

Cost-benefit analysis (CBA) is a widely used tool for evaluating the economic efficiency and social welfare implications of public policies and projects. However, CBA is not without its critics, who have raised various ethical and methodological objections to its application and validity. In this section, we will explore some of the main critiques of CBA, from both normative and positive perspectives, and discuss how they challenge the assumptions and limitations of CBA. We will also examine some of the responses and alternatives that have been proposed by CBA proponents and other scholars.

Some of the critiques of CBA are:

1. CBA ignores distributional effects and equity concerns. CBA focuses on the aggregate net benefits of a policy or project, without considering how those benefits and costs are distributed among different groups of people. This may lead to policies that favor the rich over the poor, or the majority over the minority, or the present over the future. For example, a dam project may generate more electricity and irrigation for urban areas, but displace and impoverish rural communities. CBA may justify such a project if the total benefits exceed the total costs, but ignore the unequal impacts on different stakeholders. Some critics argue that CBA should incorporate distributional weights or equity criteria to reflect the social preferences and values of the society.

2. CBA relies on subjective and arbitrary valuations of non-market goods and services. CBA attempts to measure and compare the benefits and costs of a policy or project in monetary terms, even for goods and services that are not traded in the market, such as environmental quality, human health, cultural heritage, and social justice. To do so, CBA uses various techniques, such as contingent valuation, hedonic pricing, and travel cost method, to elicit the willingness to pay (WTP) or willingness to accept (WTA) of individuals for changes in the provision or quality of these goods and services. However, these techniques are often criticized for being unreliable, inconsistent, and manipulable, as they depend on the hypothetical scenarios, survey designs, and behavioral assumptions that are used to elicit the preferences of individuals. Moreover, some critics question the validity and morality of assigning monetary values to goods and services that have intrinsic or sacred values, such as human life, biodiversity, or human rights. They argue that CBA reduces complex and multidimensional issues to a single metric of efficiency, and ignores the qualitative and pluralistic aspects of human values and choices.

3. CBA assumes perfect information and rationality of individuals and institutions. CBA is based on the neoclassical economic theory of rational choice, which assumes that individuals and institutions have complete and consistent preferences, and act to maximize their utility or profit, given their budget constraints and available information. However, this assumption is often violated in reality, as individuals and institutions face uncertainty, bounded rationality, cognitive biases, social norms, and moral emotions that affect their decisions and behaviors. For example, individuals may overestimate or underestimate the probabilities and impacts of future events, such as climate change or natural disasters, and exhibit risk aversion or risk seeking tendencies. They may also be influenced by framing effects, anchoring effects, status quo bias, or loss aversion, which may cause them to deviate from their true preferences or values. Furthermore, institutions may face collective action problems, principal-agent problems, or regulatory capture, which may prevent them from achieving the optimal or desired outcomes. CBA may fail to account for these behavioral and institutional factors, and may produce inaccurate or misleading results.

7. From Cost-Effectiveness Analysis to Multi-Criteria Analysis

One of the main challenges of cost-benefit analysis (CBA) is that it requires assigning monetary values to all the costs and benefits of a policy or project, which may not always be feasible or desirable. For instance, how can we measure the value of human life, environmental quality, or cultural heritage in monetary terms? Moreover, CBA may not capture the distributional impacts of a policy or project, such as who gains and who loses, and by how much. Therefore, some alternatives to CBA have been developed over time, which aim to address some of these limitations and provide more comprehensive and transparent evaluations of policies and projects. In this section, we will discuss two of the most widely used alternatives to CBA: cost-effectiveness analysis (CEA) and multi-criteria analysis (MCA).

- Cost-effectiveness analysis (CEA) is a technique that compares the costs and outcomes of different alternatives, without assigning monetary values to the outcomes. Instead, the outcomes are measured in physical or natural units, such as lives saved, years of life gained, emissions reduced, or cases prevented. CEA is useful when the main objective of a policy or project is clear and agreed upon, and when the outcomes can be quantified in a common unit. For example, CEA can be used to evaluate health interventions, such as vaccines, drugs, or screening programs, by comparing their costs and health outcomes, such as quality-adjusted life years (QALYs) or disability-adjusted life years (DALYs). CEA can help identify the most efficient way of achieving a given outcome, or the most effective way of spending a given budget. However, CEA cannot compare policies or projects that have different or multiple objectives, or that have outcomes that are difficult to measure or compare in a common unit.

- Multi-criteria analysis (MCA) is a technique that evaluates the performance of different alternatives across multiple criteria, which may include both monetary and non-monetary aspects, such as costs, benefits, risks, uncertainties, preferences, or values. MCA is useful when the objectives of a policy or project are complex, conflicting, or uncertain, and when the outcomes cannot be easily aggregated or expressed in a single unit. For example, MCA can be used to evaluate energy projects, such as renewable or nuclear power plants, by considering their impacts on various criteria, such as economic, environmental, social, or technical factors. MCA can help identify the trade-offs and synergies among different criteria, and rank the alternatives according to their overall performance or preference scores. However, MCA requires a lot of data and information, and involves subjective judgments and assumptions, such as how to select, weight, and score the criteria, or how to aggregate or compare the scores.

8. From Artificial Intelligence to Behavioral Economics

Cost-benefit analysis (CBA) is a widely used tool for evaluating the economic efficiency and social welfare implications of public policies, projects, and programs. However, CBA is not a static or fixed methodology. It has evolved over time in response to new developments in economic theory, empirical methods, and policy challenges. In this section, we will explore some of the emerging trends and future directions of CBA, focusing on two main areas: artificial intelligence (AI) and behavioral economics. We will discuss how these fields can enhance the accuracy, relevance, and usefulness of CBA, as well as the potential limitations and ethical issues they raise. We will also provide some examples of how AI and behavioral economics have been applied or could be applied to CBA in various domains.

Some of the ways that AI and behavioral economics can influence CBA are:

1. AI can improve the data collection and analysis process of CBA. AI is a broad term that encompasses various techniques and applications of machine learning, natural language processing, computer vision, and other forms of intelligent systems. AI can help CBA practitioners to access, process, and interpret large and complex datasets, such as administrative records, satellite images, social media posts, and online surveys. AI can also help to automate some of the tasks involved in CBA, such as identifying relevant studies, extracting and synthesizing information, and estimating causal effects. For example, AI can be used to conduct meta-analysis, which is a systematic review and synthesis of existing CBA studies on a given topic. AI can also be used to perform counterfactual analysis, which is a simulation of what would have happened in the absence of a policy intervention. For example, AI can be used to estimate the impact of a carbon tax on greenhouse gas emissions and economic growth by using historical data and predictive models.

2. AI can enable new forms of CBA that are more dynamic, interactive, and adaptive. AI can also help to create new modes and formats of CBA that are more responsive to the changing needs and preferences of decision-makers and stakeholders. For example, AI can enable real-time CBA, which is a continuous and updated assessment of the costs and benefits of a policy as it is being implemented and evaluated. AI can also enable interactive CBA, which is a participatory and collaborative approach that allows users to explore different scenarios, assumptions, and parameters of a policy and see how they affect the CBA results. AI can also enable adaptive CBA, which is a flexible and iterative approach that allows users to modify and refine the policy design and implementation based on the feedback and learning from the CBA process. For example, AI can be used to create a CBA dashboard, which is a visual and user-friendly interface that displays the key indicators and outcomes of a policy and allows users to adjust and optimize the policy inputs and outputs.

3. Behavioral economics can enrich the theoretical and empirical foundations of CBA. Behavioral economics is a branch of economics that incorporates insights from psychology, sociology, and neuroscience into the analysis of human behavior and decision-making. Behavioral economics challenges some of the assumptions and predictions of traditional economic models, such as rationality, self-interest, and consistency. Behavioral economics also provides new concepts and tools for understanding and influencing human behavior, such as heuristics, biases, nudges, and incentives. Behavioral economics can help CBA practitioners to better capture and account for the actual and potential behavior of individuals and groups affected by a policy, as well as the behavior of the policy makers and implementers themselves. For example, behavioral economics can help to improve the estimation of the costs and benefits of a policy by incorporating the effects of behavioral factors, such as time preferences, risk preferences, social preferences, and cognitive limitations. behavioral economics can also help to design and evaluate policies that aim to change or influence behavior, such as information campaigns, subsidies, taxes, regulations, and defaults.

4. Behavioral economics can also reveal the limitations and challenges of CBA. Behavioral economics can also help CBA practitioners to recognize and address some of the problems and pitfalls of CBA, such as measurement errors, valuation errors, distributional issues, and ethical dilemmas. For example, behavioral economics can help to identify and correct some of the biases and errors that may affect the CBA process, such as confirmation bias, availability bias, anchoring bias, and framing effects. Behavioral economics can also help to assess and improve the validity and reliability of the methods and techniques used to measure and value the costs and benefits of a policy, such as willingness to pay, contingent valuation, and hedonic pricing. Behavioral economics can also help to evaluate and compare the distributional and equity impacts of a policy, such as who bears the costs and who enjoys the benefits, and how they are affected by the policy. Behavioral economics can also help to examine and resolve some of the ethical and moral questions that may arise in CBA, such as how to value human life, health, and happiness, and how to balance efficiency and fairness.

9. How to Use Cost-Benefit Analysis Wisely and Responsibly?

In this section, we will conclude our blog on the history of cost-benefit analysis (CBA) by offering some practical tips on how to use this tool wisely and responsibly. CBA is a powerful and widely used method for evaluating the efficiency and desirability of public policies, projects, and programs. However, it is not a magic bullet that can solve all the complex and contentious issues that arise in the social and environmental domains. CBA has its limitations, challenges, and controversies, and it requires careful and critical application by both analysts and decision-makers. Here are some of the key points to keep in mind when using CBA:

1. Understand the assumptions and values behind CBA. CBA is based on the assumption that all the costs and benefits of an intervention can be identified, measured, and monetized, and that the net present value (NPV) of the benefits minus the costs can be used as a criterion for choosing the best option. However, this assumption may not always hold, and it may not reflect the values and preferences of all the stakeholders involved. For example, some costs and benefits may be intangible, uncertain, or difficult to quantify, such as the value of human life, health, or biodiversity. Some stakeholders may have different time preferences, risk attitudes, or ethical views than those implied by the discount rate, the expected utility function, or the willingness-to-pay measure. Therefore, it is important to be transparent and explicit about the assumptions and values that underlie CBA, and to acknowledge and address the potential sources of bias, uncertainty, and disagreement.

2. Use CBA as a tool for informing, not dictating, decisions. CBA can provide useful information and insights for decision-makers, but it should not be the sole or final basis for making decisions. CBA is not a substitute for political judgment, democratic deliberation, or ethical reasoning. CBA can help identify the trade-offs and opportunity costs of different alternatives, but it cannot tell us what is the right or fair thing to do. CBA can also be influenced by the choice of the baseline scenario, the scope and boundaries of the analysis, the methods and data used for valuation, and the criteria and rules for aggregation and distribution. Therefore, CBA should be accompanied by a sensitivity analysis, a distributional analysis, and a stakeholder consultation, to test the robustness and acceptability of the results, and to consider other relevant factors and perspectives that may not be captured by CBA.

3. Use CBA as a tool for learning, not justifying, outcomes. CBA can be a valuable tool for learning from past experiences, evaluating current situations, and anticipating future consequences. CBA can help us understand the causes and effects of our actions, the costs and benefits of our choices, and the implications and alternatives of our policies. However, CBA should not be used as a tool for rationalizing or justifying predetermined outcomes, or for manipulating or ignoring evidence that does not fit our preferences or interests. CBA should be conducted with honesty, integrity, and objectivity, and with a willingness to revise our views and actions in light of new information and feedback. CBA should also be communicated clearly, accurately, and respectfully, and with a recognition of the limitations and uncertainties of the analysis.

CBA is a useful and influential tool for policy analysis, but it is not a panacea or a dogma. It is a tool that requires skill, judgment, and responsibility, and that can be used for good or ill, depending on how and why it is used. By following these tips, we hope that you can use CBA wisely and responsibly, and contribute to better and more informed decisions for the public good. Thank you for reading our blog on the history of CBA, and we hope that you have learned something new and interesting from it. If you have any comments, questions, or feedback, please feel free to contact us or leave a comment below. We would love to hear from you!