Cost-Benefit Analysis: Principles and Practice

This course aims to equip students with the knowledge and skills to understand, apply, and critically evaluate cost-benefit analysis (CBA) in public policy decision-making. Students will learn the fundamental purpose of CBA in assessing the social value of government initiatives and master key concepts and tools for evaluating government activities, including methods for handling uncertainty. The course emphasises practical applications through real-world case studies, primarily focusing on energy, environmental, and transportation policies. Students will examine recent CBAs conducted by government agencies, explore key issues such as distributional effects, and develop the ability to communicate CBA findings effectively. By the end of the course, students will be prepared to contribute to informed decision-making in public policy, equipped with a solid understanding of current CBA practices and challenges.