Analysis Planning
Alexia Nalewaik · 2024
Chapter 2 explains the basic process for conducting analysis, using cost-benefit analysis as a starting point (although all analysis methods follow the same or a similar process). Each step is described in detail, and tools and guidelines are provided for improving analysis results and avoiding complications. Particular attention is paid to developing the analysis scope, the types of choices that need to be made during that step of the process, and the potential effects of those choices. Definitions of costs, benefits, and disbenefits are provided, with a list of examples. Approaches to (and issues with) quantification are then discussed, including costing, monetary values by proxy (shadow pricing), and the use of ordinal scales for ranking. Basic economic feasibility calculations are introduced next, followed by scenario ranking and selection. Concepts of assumptions and omissions are introduced and discussed. The section concludes with a discussion about benefits management and ex-post analysis.