Cost-benefit analysis (regions)

Regions and municipalities

Cost-benefit analysis for regions

A social cost-benefit analysis (MKBA) supports regional policy and area-based initiatives with a broad welfare perspective. The method makes effects on the living environment, health and economy visible, comparable and suitable for administrative decision-making.

Regional choices affect the living environment, health and economy at the same time. A social cost-benefit analysis (MKBA) makes those effects explicit and comparable, so policy and investment decisions can be substantiated from a broad welfare perspective.

Policy with evidence

Effects

Social costs and benefits of policy choices.

Comparison

Scenarios assessed through broad welfare effects.

Decision

Evidence that supports administrative choices.

The approach

1Define the policy question, scope and scenarios.
2Identify social effects in the area.
3Value effects and compare scenarios.
4Prepare evidence for governance and decision-making.

Further reading in the knowledge base

Key concepts behind regional evidence and broad welfare.

Related solutions

From practice

Projects and insights

From practice

Recent work

Projects by New Economy are analyses and reports for companies, products, municipalities and provinces — grounded in LCA, CBA and CO₂ footprint.

All projects

Frequently asked questions

What is a cost-benefit analysis for regions?

A social cost-benefit analysis (MKBA) maps the wider effects of area-based policy and regional initiatives on the living environment, health and economy.

Why apply a social cost-benefit analysis (MKBA) to policy?

Policy choices often create effects outside the public budget. A social cost-benefit analysis (MKBA) makes those effects visible and comparable for administrative assessment.

How does a social cost-benefit analysis (MKBA) relate to broad welfare?

Broad welfare provides the value framework. A social cost-benefit analysis (MKBA) provides the instrument to substantiate and compare those values in concrete policy choices.

Which scenarios can be compared?

Scenarios can include policy alternatives, investment choices or programme variants, as long as scope, effects and assumptions are defined consistently.

Ready for evidence-based area policy?

A social cost-benefit analysis (MKBA) makes the wider value of regional choices visible.

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