Work

Cost‐benefit analysis to provide decision criteria: A case study of municipalities in Japan

Year: 2025

Type: article

Abstract: This study explores the use of cost‐benefit analysis (CBA) as a decision‐making tool by deriving boundary values that distinguish positive and negative policy outcomes. While traditional CBA relies on fully quantifiable inputs, this approach focuses on providing reference values for uncertain variables, using CO 2 emission reductions as an illustrative example. A case study of municipal subsidies for residential photovoltaic (PV) systems in Japan demonstrates how such boundary values can guide policy evaluation. The findings highlight the potential of CBA to offer objective benchmarks for policy discussions, emphasizing its utility beyond specific contexts, including CO 2 reduction, to broader decision‐making scenarios.

Source: Annals of Public and Cooperative Economics

Author: Shin‐ichi Hanada

Institution: Hirosaki University

Language: English

Topic: Economic and Environmental Valuation

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Sustainable cities and communities

Open Access status: hybrid

Estimated APC paid: $3,240

Funder: Japan Society for the Promotion of Science