Cost benefit analysis as a tool for measuring impact Urban Agriculture Forum

Today’s presentation What is a CBA Importance of quantifying impacts Government decision making - BCR Example: 3000acres

What is CBA? Measure of whether a project or initiative will make society better off, compared to what would have happened without the project The measure is a benefit cost ratio (BCR)

How does CBA differ Cost Benefit Analysis differs from other evaluation techniques Commercial viability assessment Economic impact analysis Triple bottom line analysis Goals achievement analysis Cost effectiveness analysis

Example: 3000acres

Calculating the BCR 3. Benefits/Costs = BCR 1. Costs, e.g.: 2. Benefits, e.g.: Organisation costs Reduced transaction costs Garden set-up costs Better utilisation of land Garden operation costs Community Benefit to land owners (opportunity cost) Health from exercise Leisure benefits Education (sustainability) Education (enterprise dev.) Food cost savings Ecosystem services 3. Benefits/Costs = BCR

Summary Measure of whether a project or initiative will make society better off Useful tool for demonstrating the benefits of an initiative Used by state government in decision making

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