Preface

This book was born out of necessity—the growing need for a clear, structured, and applied guide to Cost-Benefit Analysis (CBA) that goes beyond theory and speaks directly to the realities of decision-making in the public, private, and non-profit sectors.

For over 15 years, I have worked closely with researchers, practitioners, policy makers, and students, delivering training and consultancy on how to design and evaluate projects through a cost-benefit lens. Time and again, I observed a gap between economic theory and real-world application. This guide aims to bridge that gap, equipping decision-makers with practical tools, nuanced perspectives, and a deeper understanding of both the power and limitations of CBA.

“Cost-Benefit Analysis: A Practical Guide for Decision-Making” is structured to support progressive learning. Chapters 1 to 4 lay the analytical foundations—from understanding basic concepts and discounting, to a step-by-step walkthrough of CBA. Chapters 5 and 6 apply these principles in real-world scenarios, addressing common traps and implementation challenges. In Chapters 7 and 8, I introduce advanced techniques, including dynamic modelling and value-of-information strategies. Finally, Chapters 9 and 10 reflect the evolving frontier of CBA—exploring behavioural economics and data extraction methods that capture complexity in human decision-making and environmental systems.

This book is written for a diverse audience: students seeking practical grounding, professionals needing a structured reference, and organisations navigating high-stakes decisions. Whether you’re designing a regional development initiative, evaluating a health intervention, or advising on environmental policy, this guide offers a rigorous yet accessible framework.

My hope is that readers will walk away not only with technical knowledge but with an appreciation for CBA as both a science and an art—one that requires careful judgment, ethical sensitivity, and an awareness of broader societal impacts.

-Taha Chaiechi
Cairns, Australia
2025