The Ethics and Politics of Environmental Cost-Benefit Analysis

The aim of this book is to discuss some of the ethical and political issues arising in the context of applied cost-benefit analysis and environmental valuation “ and to do so using economic analysis, but in a language accessible to non-specialists. In particular, the author emphasizes the fundamental, but surprisingly often poorly understood distinction between normative and positive analysis, and the implications of this distinction for practical use of cost-benefit analyses. Most books in cost-benefit analysis assume, implicitly or explicitly, that the purpose of a project assessment is to rank projects according to their net contribution to social welfare. Here, the purpose of a project assessment is to provide the best possible informational input to a democratic decision-making process “ in which there may be normative disagreement, and in which no single decision-maker may necessarily be able to decide the final outcome. Hence, the book provides a systematic and easily accessible discussion of such issues, based on economic theory, but with a strong emphasis on applicability. It is aimed at people who use or are faced with CBA methodology and/or environmental valuation studies in their work, such as politicians, employees of ministries and regulatory agencies, students, and applied economists.