Traditionally, cost-benefit analysis quantifies in monetary terms as many of the costs and benefits of a proposal as feasible, including items for which the market does not provide a satisfactory measure of economic value.
The increasing importance of social and environmental concerns in development projects witnessed in recent years and the risk issues that need to be addressed in flood management have underlined the need for some criteria other than the traditional cost-benefit criterion for evaluating the usefulness of a project.
One line of approach has been to expand the range of economic analysis and put monetary values to social and environmental concerns. Another line of approach has been to develop a complementary methodology through multi-criteria analysis (MCA). It involves judging the expected performance of each development option against a number of criteria or objectives.
For more information about MCA, please refer to “What is multi-criteria analysis (MCA)?“