Cost-benefit analysis (CBA) is a holistic appraisal method that estimates the economic, social, environmental and cultural costs and benefits of an initiative and expresses them in monetary terms. CBA aims to measure the full impacts of any government decision or action on the households, businesses, governments, non-government organisations and natural assets in a specified community, known as the referent group. In this Guide, the referent group comprises the residents of New South Wales.
CBA measures the costs and benefits attributable to an initiative relative to a business-as-usual situation without the proposed initiative. The business-as-usual situation is known as the base case.
Technical Note to TPG23-08: Carbon value in cost-benefit analysis
