We have extensive experience with cost-benefit analyses (CBAs)at EU and national level, across a variety of topics.
We know that the success of a CBA depends crucially on the quality of the inputs to be analysed and always ensure that a suitable team of experienced researchers with detailed knowledge of available data is involved in our CBAs. In addition, we know that data is not always available from official, public or paid-for sources and are experienced in sourcing data through stakeholder consultations, to provide the most accurate and best possible picture of initiative under analysis and its financial and socio-economic impacts.
Following the European Commission’s Better Regulation “Toolbox”, our CBAs include the following steps:
- Identify and value costs and benefits in nominal term;
- Convert nominal to real terms and discount to take into account the time value of money;
- Build CBA model to allow comparison of present value costs and benefits; and
- Extract outputs: Benefit-Cost Ratio, Net Present Value, Break-Even Point, Internal rate of Return, etc.
Our CBAs always include a sensitivity analysis covering the most critical inputs, to test the robustness of results against key assumptions.
Beyond CBAs, we apply our data-driven and rigorous approach to a wide range of other economic studies and analysis, priding ourselves for the transparency and impartiality of our assessments.