Social Cost Benefit Analysis
A social cost benefit analysis (SCBA) is a method used to evaluate projects in an integrated way. The essence of an SCBA is that all relevant societal effects are identified as thoroughly as possible. These effects are, where possible, valued in euros based on widely accepted scientific insights so they can be compared. Effects that cannot be monetized are also given a prominent place. The guidelines further prescribe that an SCBA must not contain double counting. Both positive and negative effects on, for example, the living environment, accessibility, and health can therefore be compared with one another. The method is much more than a financial analysis, because it also includes and assesses effects that do not directly cost or generate money but that people still value. The SCBA has a tradition of more than 25 years in the infrastructure domain, but it can be applied across all policy fields.
Decisio has extensive experience in applying social cost benefit analyses across a wide range of policy domains. In addition, our consultants develop methodologies for specific applications and create tailor‑made tools for various organizations. They also provide SCBA courses and training. Decisio is a founding partner of MKBA‑informatie.nl and co‑developer of the SCBA‑light method ‘Wikken & Wegen’.
SCBAs are often a valuable way to structure and present complex decision‑making information as clearly as possible. But that is certainly not always the case. Thanks to our many years of experience, we know better than anyone in which situations an SCBA adds real value and when another form of analysis or presentation of decision information works better. Would you like to know whether an SCBA is the right tool for your specific question? Then take a look at the Decisio decision tree for societal and economic assessments. It quickly shows you which tool is most suitable for your societal and economic considerations.
Presenting the results of an SCBA is always tailored to the specific project and its audiences. Elements that are typically included in an SCBA presentation are:
In addition to comparing alternatives within the same project, an SCBA also makes it possible to compare different projects with one another. This can be useful when developing spatial and/or infrastructure investment programmes. Projects with the highest societal return deserve priority in investment and implementation programmes.
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