Social Cost-Benefit Analysis

Social Cost-Benefit Analysis (SCBA) is a method used to evaluate the overall value of a project or policy by comparing its total costs with its total benefits to society. It considers not just financial aspects, but also social and environmental impacts. For example, when assessing a new public transport system, SCBA looks at the costs of construction and maintenance against the benefits of reduced traffic congestion, lower pollution, and improved access for residents. The goal is to determine whether the project is worthwhile for society as a whole, guiding decision-makers toward choices that enhance public welfare.