A cost-benefit analysis or BCA is a helpful tool for program evaluation; it attempts to compare costs with the dollar value of all or most of the many benefits of a program. It could be applied any time; before, after or during the program of implementation, and it can assist decision makers in evaluating the efficiency of a program. In addition, it considers the changes in costs and benefits that would cause by potential improvement to the status quo facility. Status quo is the state of the world in the absence of the program or policy.
In connection to a power station that is planned in our local area, and in view to the potentiality on economic and environmental impacts, the process would be very difficult. It is difficult because the process involves some major necessary steps. First, objectives should be established and identify constraints and specify assumptions. Second, it is needed to define base case and identify alternatives and set analysis period. Third, define the level of effort for screening alternatives and analyze traffic effects. Fourth, a proper estimation of benefits is crucial and costs relative to base case alternatives. Last, evaluate risk, compare net benefits, rank alternatives, and make recommendations.
I would illustrate the advantages and disadvantages, as my preliminary judgment on whether the power station should be put up, example is a nuclear power plant. Pollution is the beginning of contaminants in the environment. It initiated during the industrial revolution when large-scale factories started burning fossil fuels. The urbanization leads to large amount of untreated wastes that entered the rivers and oceans, and damaged animal life. Humans started to use plastics, non-biodegradables. In fact, environmental scientists are aimed to eliminate a number of dangerous greenhouse gases. In consideration to these foreseen events of pollution, it should be dealt with properly. The famous slogan that says, “The solution to pollution is dilution” should be replaced to “the solution to pollution is elimination.” Some people would say that the solutions lie in the free market, recognition, and defense of property rights appropriately. While the ethicists and economists would say that the solutions lie in the government and its strict regulations.
Reference
Fieser, J., & Moseley, A. (2012). Introduction to business ethics. San Diego, California: Bridgepoint Education, Inc.
