This is the third in a series of four blogs featuring key excerpts from the writings of our founder and past president, Richard Zerbe. His insights shaped the foundation of our association and remain relevant to today’s challenges. We hope these selections offer valuable perspectives to all members.
That moral sentiment whose consideration is the most prominent is the Benefit-Cost Analysis (BCA) treatment of distributional matters.
This is the first in a series of four blogs featuring key excerpts from the writings of our founder and past president, Richard Zerbe. His insights shaped the foundation of our association and remain relevant to today’s challenges. We hope these selections offer valuable perspectives to all members.
It is useful to date the major changes in Cost-Benefit Analysis (CBA) from the publication of the 1979 work of Kahneman and Tversky (1979) and the subsequent creation of the Society for Benefit-Cost Analysis (SBCA) - which occurred at a 2007 meeting arranged by the Evans School at the University of Washington at which we proposed to form a Society for Benefit Cost Analysis - with a concomitant Journal. In using the Benefit-Cost Analysis (BCA) terminology we thought to distinguish BCA from its CBA roots in engineering. This distinguishment aimed to provide a more economic flavoring to the name and to practice. I suggest BCA can be usefully seen as a further development or evolution of CBA. Table 1 shows the differences.
In honor of Dr. Richard O. Zerbe, the Society for Benefit-Cost Analysis is publishing a highlight series celebrating his remarkable contributions to the field. As a founding member and past president of the Society, Dr. Zerbe’s work has shaped benefit-cost analysis (BCA) by advancing its theoretical and ethical frameworks and championing its integration into public policy and decision-making. His efforts have also expanded BCA’s role in addressing today’s complex societal needs. His influence has inspired generations of scholars and practitioners to view BCA not just as a tool for economic outcomes but as a means of promoting equity, social justice, and sustainability.
Dr. Zerbe’s career has redefined BCA by embedding ethical principles into the heart of the analysis. He has emphasized incorporating moral considerations such as fairness and justice alongside efficiency, broadening BCA’s scope beyond traditional economic metrics. His multidisciplinary approach integrates insights from law, economics, and public affairs, promoting BCA’s application in areas such as environmental protection, health care, and social policy. Zerbe’s perspective ensures that BCA remains a relevant and adaptable tool for addressing complex societal challenges.
The new White House “Frontiers” report, Advancing the Frontiers of Benefit-Cost Analysis: Progress On Federal Priorities, Insights for the Research Community, and Emerging Topics was published October 16th, 2024, by the Subcommittee on Frontiers of Benefit-Cost Analysis (SFBCA), and Committee on the Environment of the National Science and Technology Council. This follows the inaugural December 2023 White House Press Release: Advancing the Frontiers in Benefit-Cost Analysis, and the accompanying report, Advancing the Frontiers of Benefit Cost Analysis: Federal Priorities and Directions for Future Research, January 2023 White House Fact Sheet: National Strategy to Put Nature on the Nation’s Balance Sheet, and Full Report on developing statistics for environmental-economic decisions. These follow a memorandum issued by President Biden to federal agencies, directing them to monetize their analytical approaches (Modernizing Regulatory Review or Executive Order 14094, Jan. 26, 2021).
The 2024 SFBCA “Frontiers" Report summarizes progress on the five focal areas (effects) identified in the 2023 report that are currently difficult to monetize or quantify in analyses of agency regulations, projects, programs, or other actions; highlights ways for the research community to engage with the policy process and provide policy-relevant science and economics for benefit-cost analyses; and identifies additional frontiers topics.
The 2024 CBA Forum, held by The Economic Society of Australia New South Wales (ESANSW) earlier this year, brought together some of Australia's brightest minds in economic analysis, policy evaluation, and decision-making. The presentations - a mix of keynotes, panel discussions, and case studies - provided updates on state and national guidelines together with sessions on: Health, Justice, Water, Transport, Environment, Energy, First Nations and Carbon values.
We’re thrilled to announce the release of the final group of papers from the upcoming Journal of Benefit-Cost Analysis (JBCA) special issue on the revised Circular A-4. With this release, the full collection of comments submitted by former SBCA presidents and JBCA editors is now available as working papers on the SBCA website.
This concludes our series of early releases, though the official JBCA special issue will follow next year. We hope these papers have provided valuable insights, and we look forward to continuing the conversation around the revised Circular A-4.
We are excited to share the third group of papers in our ongoing series related to the JBCA special issue on Circular A-4. These newly released articles provide further insights and analysis on the Biden administration’s revisions to Circular A-4, expanding the dialogue on key policy impacts.
These working papers are available now on the SBCA website here. We encourage our members to review these new additions and engage with the content as part of this critical ongoing discussion. Our final group of papers will be released soon, completing this early preview of the special issue.
We’re pleased to release the second group of papers from the Journal of Benefit-Cost Analysis (JBCA) special issue on Circular A-4. This next set of articles delves even deeper into the implications of the Biden administration’s revisions to the guidelines.
As with the first group, these papers are available as working papers on the SBCA website here. Each piece continues to reflect a combination of peer review and public input, offering unique perspectives from leaders in the benefit-cost analysis community. Be sure to explore this latest set of contributions and check back soon for the next release.
We’re excited to share the first group of papers from the upcoming special issue of the Journal of Benefit-Cost Analysis (JBCA) on the Biden administration’s revised Circular A-4. This first set of papers includes comments from former SBCA presidents, offering a mix of peer-reviewed and public insights on the policy changes.
Each article has been published on the SBCA website as a working paper, giving our members early access to this important research. Access the first group of papers here, and check back periodically for future installments as we continue to release more papers in this series. These papers are part of an ongoing JBCA project, and while they will appear in a future issue, we are thrilled to highlight them now.
As a community of practice, we have the opportunity and even the responsibility to provide input during comment periods for federal and state agencies rule making prior to becoming entrenched in agency policy and application tools. One of these opportunities is currently open in the Federal Register for the US Army Corps of Engineers. The Army has broad responsibility and authority to build, maintain, enhance, and manage flood protection and reservoir projects across the country. The Army has been using a form of benefits exceeding costs test since the introduction of their first projects in the early 1900’s. The 2020 Water Resources Development Act instigated a re-evaluation of what is included in the army’s efficiency analysis and references many of the issues addressed at the last several SBCA conferences. Social and environmental costs are being discussed and how these and other concept can and should be quantified, qualified, and considered in alternatives analysis and final funding processes. This (SBCA) community of practice’s expertise on these topics, as well as the technical mechanics of BCA, valuation methods, and social welfare optimization make each of you a valuable contributor for the army as they collect comments and information to help them formulate practices and rules. Please consider reviewing the current solicitation for comments to ensure, those that know and do, are providing input, and that as a community we are helping guide the framework of the ecosystem within which many, with less experience and training, will be asked to participate on the project level.
Comments must be received on or before April 15, 2024. Learn more>> or contact Duane.