Cost–benefit analysis

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Monetary assessment of all negative and positive impacts associated with a given action. Cost–benefit analysis enables comparison of different interventions, investments or strategies and reveals how a given investment or policy effort pays off for a particular person, company or country. Cost–benefit analyses representing society’s point of view are important for climate change decision-making, but there are difficulties in aggregating costs and benefits across different actors and across timescales.

See: Discounting


How To Do A Cost-benefit Analysis & Why It's Important (Harvard Online)