chapter  9
15 Pages

Cost/Benefit Analysis

ByMichael Curley

This chapter presents financial concepts from the perspective of a government official whose responsibility it is to manage or administer a program to provide funds for municipal utility services – an environmental infrastructure finance program. As is apparent, the above rubrics relate the cost to the benefits it produces. In short, to effectuate this rubric, a government environmental finance program that makes grants must: perform a cost/benefit analysis, and, prioritize the results of that analysis. To achieve these two results, government environmental finance programs must create two matrices to deal with the data necessary for the cost/benefit analysis. The rubrics are deceptively simple. They imply the creation of a matrix—in fact two matrices—and a unique form of cost/benefit analysis. In doing so, they have requirements which have great value in and of themselves.