Cost Benefit Analysis

Cost benefit analysis (CBA) is an economic tool; a systematic approach used to assess the value to the community of investments, policy and regulatory changes. It involves comparing the costs of an action (monetary or otherwise) with its expected social, environmental and economic benefits (monetary or otherwise) with the ultimate goal of determining the feasibility and value of that action.

In simpler terms, a CBA answers the question, "what is the value to the community of this proposed change?"   

A wide range of use cases for cost benefit analysis programs

We work in the private and public sectors across industries including the urban and rural water sectors, transport, energy and renewables markets, biodiversity, social infrastructure, telecommunications and more, including e.g: 

• Detailed financial modelling and projections e.g. assessing the feasibility of new ventures, products, or services.   
• Impacts, both monetary and non monetary, from investments, regulatory changes and public policy decisions inc. social and environmental impact.
• Risk evaluation and sensitivity analysis, including adaptive pathways and real options analysis, in public and private sector projects and decisions.   
• Distributional analysis to provide further information on how different community groups are impacted from the investments, regulatory changes and public policy decisions. 
• Strategic recommendations for project implementation, and on ongoing project evaluation and monitoring.   
• Developing CBA guidelines and methodologies informing our clients on how to apply cost benefit analysis to specific sectors.

No two cost benefit analysis programs are alike

Our team of seasoned economists utilise a combination of quantitative techniques, industry insights, and practical experience to provide comprehensive cost benefit analysis consulting services.  

We recognise that no two projects are alike, and no two questions in a cost benefit analysis are alike. With decades of experience in economic analysis, we craft cost benefit analysis programs to ensure straightforward and actionable insights, no matter the challenge being investigated.  

We believe in clarity. Our methodologies are transparent and consistent with best practice, ensuring you understand every step of the process.  

Our robust CBA analysis methods, including data analysis and economic modelling, can help:  

• Objective Assessment: An unbiased view on projects or decisions can reveal potential pitfalls or overlooked benefits.  
• Resource Allocation: Helps in prioritising projects or decisions based on their potential value and impact. 
• Risk Management: Identifies potential risks associated with an investment and the value of flexibility to respond to them.
• Strategic Planning: Provides clarity in long-term planning by showcasing the potential value of investments or decisions.