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Social Cost-Benefit Analysis×Cost-Benefit Analysis×
FieldEconomicsHealth Economics
FamilyProcess / pipelineProcess / pipeline
Year of origin19741970s
OriginatorIan Little & James Mirrlees; Partha Dasgupta, Amartya Sen & Stephen Marglin (UNIDO)Boardman, Greenberg, and colleagues (welfare economics)
TypeWelfare-based project appraisal using shadow pricesMethod
Seminal sourceLittle, I. M. D., & Mirrlees, J. A. (1974). Project Appraisal and Planning for Developing Countries. Heinemann Educational / Basic Books. ISBN: 9780435845001Boardman, A. E., Greenberg, D. H., Vining, A. R., & Weimer, D. L. (2018). Cost-Benefit Analysis: Concepts and Practice (5th ed.). Cambridge: Cambridge University Press. link ↗
AliasesSCBA, Economic Appraisal, Shadow-Price Cost-Benefit Analysis, Social Appraisal of Investment ProjectsCBA, economic appraisal, benefit-cost ratio
Related35
SummarySocial cost-benefit analysis (SCBA) appraises public investment projects from the standpoint of society as a whole rather than a private investor. It values inputs and outputs at shadow prices that reflect their true opportunity cost to the economy — correcting market prices for taxes, subsidies, trade distortions, and unemployment — applies distributional weights to gains accruing to different income groups, and discounts the resulting stream of social net benefits at a social discount rate to obtain a net present social value. The modern framework was systematized by Little and Mirrlees and, in parallel, in the UNIDO guidelines of Dasgupta, Sen, and Marglin.Cost-benefit analysis compares the total monetary value of benefits produced by a program against its total monetary costs, reporting net present value (NPV) or benefit-cost ratio (BCR). Rooted in welfare economics and used extensively in public policy (transportation, environmental, education, health), CBA answers the question: 'Is this program worth doing from a societal perspective?' Unlike cost-effectiveness analysis, CBA monetizes both costs and benefits, enabling comparison across disparate program types.
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ScholarGateCompare methods: Social Cost-Benefit Analysis · Cost-Benefit Analysis. Retrieved 2026-06-24 from https://scholargate.app/en/compare