Social cost/benefit analysis

Social Cost/Benefit Analysis Student’s Name University Course Professor Date Social Cost/Benefit Analysis 1 What are the significant advantages of using a cost analysis? Explain. Benefit-cost analysis, or CBA, is a valuable technique for assessing programs; while it has certain limitations, its strength makes it very useful. Usually, CBA helps decision-makers evaluate whether the gain will be more than the loss of the exposure of a project to scarce resources for use in policies, projects, and initiatives. To illustrate, Wang et al. (2004) applied and elaborated on the use of CBA in health promotion and evaluated the cost evidence on bicycle/pedestrian trails. However, their study highlighted the ripple health effects and economic impacts that are significant for public nursing investments. 2 What are the weaknesses? CBA has challenges such as oversimplifying complex social issues or undervaluing intangible benefits. According to Hwang (2015), CBA distorts the nature of complex social problems and places less concrete benefits like environmental and social factors. Further, Chanley et al. (2001) elaborated on the finer details of social cost/benefit analysis. According to their account, different social impacts were difficult ...