This chapter examines the role of benefit-cost analysis (BCA) as a tool to inform collective decision making surrounding resource allocation trade-offs. It focuses on two major issues of contention, job losses and environmental impacts in policy assessment. The issue of rent-seeking behaviour is identified as a challenge in communicating the results of benefit-cost analysis. The chapter raises questions about the conceptual validity of some approaches to valuation of non-market benefits that may undermine public confidence in BCA.
|Title of host publication
|Water Policy Reform: Lessons in Sustainability from the Murray-Darling Basin
|John Quiggin, Thilak Mallawaarachchi, Sarah Chambers
|Place of Publication
|Cheltenham, UK and Northampton, MA, USA
|Edward Elgar Publishing Ltd.
|Published - 2012