Question

Explain in detail about Cost Benefit Analysis?

08 Sep 2025
Answer :
Word Count : 1129
Cost Benefit Analysis (CBA) is a systematic approach used to evaluate the financial and non-financial implications of a project, policy, or decision by comparing its expected benefits with its associated costs. Within the framework of Environmental Impact Assessment (EIA) for environmental health, CBA plays a vital role in determining whether the proposed activity provides net positive outcomes not only in terms of economic gains but also regarding environmental protection and human well-being. Since most developmental projects have direct or indirect implications for the environment and public health, CBA serves as a decision-making tool that integrates economic efficiency with sustainability considerations. The process of CBA involves identifying, quantifying, and comparing all potential costs and benefits associated with a project. Costs usually include capital investments, operational expenses, and environmental damages such as pollution, ecosystem degradation, and adverse health impacts. Benefits, on the other hand, comprise enhanced productivity, improved infrastructure, job creation, better public services, and sometimes indirect ecological gains from sustainable practices. The core principle behind CBA is that if the benefits of a project outweigh its costs, then the project is considered viable, while if the costs exceed the benefits, the project should either be modified or abandoned. In the context of environmental health, CBA has a unique significance because many environmental impacts are not easily quantifiable in monetary terms. For example, the value of clean _____ ______ _______ _______ ________ _________ _______ ________ ___.
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