The Society for Benefit-Cost Analysis (the “Society”), founded in 2007, is an international group of practitioners, academics, and others who are working to improve the theory and application of the tools of benefit-cost analysis. Although these tools have gained wide acceptance in many countries, ongoing work is needed to continue to improve the tools, their application, and the institutional settings in which they are applied.
Benefit-cost analysis (BCA), also known as cost-benefit analysis, aims to inform the decision-making process with specific types of information, namely measures in monetary terms of willingness to pay for a change by those who will benefit from it as well as of the willingness to accept the change by those who will not benefit.
The use of monetary terms provides a common metric. Its purpose is not to price everything, but rather to order choices in a way that informs decision-makers about social factors.