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

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

3. 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)

4. 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

5. Example: 3000acres

6. 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

7. 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

8. Thank you