Problem: Cost-Benefit Analysis
Many believe cost benefit analysis ("CBA") is the best approach to take when evaluating an expensive government project. Others argue that CBA is too technical and often fails to incorporate the finer points or bigger issues that cannot be accounted for within a CBA framework.
A. Provide a list of pros and cons of a CBA and then highlight how private sector CBA's differs from that of a government CBA and why. Take a position as to whether you like a CBA framework and if not, what other approaches would you take to determine the feasibility or net benefits of a large, big-ticket, issue such as reducing climate change.
B. Highlight the differences in reporting requirements of a CBA for government purposes from that of a private sector CBA. Why is the reporting requirements for government purposes so expansive? What are some of the issues governments are trying to achieve in a government context not found when do private sector CBA that impacts reporting requirements? How does specific reporting objective in a government CBA attempt to achieve certain objectives of the government and why?
C. What are the best practices from western government CBA that can be applied to governments performing CBA in developing economies? Be as specific as possible.