A closer look at the European Commission’s Guide to Cost-Benefit Analysis of Investment Projects [Sep/2020]
In December 2014, the European Commission published a “Guide to Cost-Benefit Analysis of
Investment Projects” that aims to provide decision-makers with an analytical
tool to assess investment decisions and evaluate their impact. These guidelines
and principles of Cost-Benefit Analysis (CBA) contribute to a more efficient
financial resource allocation, as policy-makers are more and more expected to
adopt transparent procedures for making key decisions about existing and new
projects investments.
CBA helps estimating the economic advantages and disadvantages of an investment, by evaluating its cost and benefits to quantify the impact of its realisation. This evaluation approach is in principle used before the investment is done. It is an ex-ante evaluation, but in some cases it can also be used for interim and ex-post evaluations.
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