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|
|Editors||John Quiggin, Thilak Mallawaarachchi, Sarah Chambers|
|Place of Publication||Cheltenham, UK and Northampton, MA, USA|
|Publisher||Edward Elgar Publishing Ltd.|
|Publication status||Published - 2012|