5. Cost-benefit analysis

CBA allows us to produce a stand-alone ratio: by expressing the benefits of a combination of measures in monetary form, it can be used to conclude whether the combination is disproportionate, at least in theory. Insofar as the costs exceed the benefits, if the benefits are assessed with a sufficient degree of confidence, the combination can then be judged as disproportionate.

This method enables us to measure the appropriateness of a project or policy, as well as its financial impact. It is a tool that can be used before a decision is taken, to assess risks...