ABSTRACT
FORESTALLING OR REDUCING THE CONSEQUENCES of pollution is not a cost-free exercise, and, as a result, any proposed policy or regulation should assess the relative benefits as well as costs. Commonly used by governments to choose between competing public projects, cost-benefit analysis (CBA) has been adopted as a useful conceptual framework for assessing policies and projects that have an environmental impact. The mathematical formulation of CBA is straightforward and is represented in equation #1 for any given project: https://www.w3.org/1998/Math/MathML"> ( 1 ) NPV = (B 1 -C 1 )/(1+r) + (B 2 -C 2 )/(1+r) 2 … ( B n − C n ) / ( 1 + r ) n https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203107478/c2bc82bb-d1e1-4a9f-b07e-484744df4bd9/content/math_12_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/>
