MCA and CBA Flashcards
Why do we do MCA or CBA?
To weigh alternatives to each other and see which one is the best based on specific criteria.
What is evaluation about in an MCA?
about judging pros and cons, valuing policy options or alternative options. What criteria are used and why? Was there a sensitivity analysis performed or not? Is the scale logical?
Reducing complexity: aggregation of information –> into compact form –> decision-making.
What is underarticulation?
If we are not asking for preferences and not through other means it is under articulation
What are MCA or CBA’s used for in essence?
reducing complexity. Making complexity easier. Balancing informationrichness and aggregation tradeoffs.
Explain the essence of the Hanssen et al paper about the ConSite Tool Suite.
The paper addresses the challenges in siting renewable energy structures, such as onshore wind-power plants and high-voltage power lines, due to their impacts on the environment and society. The consensu based siting tool used a combination of Spatial analysis with GIS and stakeholder involvement. Problem is defined, decision problem is formulated, criteria are valuated and stakeholders are involved in this whole process. Continuous feedback loops are constantly done to improve the outcome and foster co-learning.
What can Spatial Multi-criteria decision analysis (SMCDA) tools be used for?
to identify suitable development areas and render feedbackon the conflict potential and its inherent conflict levels. This can come in the form of suitability maps and to find the most suitable solution that minimizes conflict and maximizes consensus among stakeholders.
Explain the essence of the Anthony Boardman paper. What do the three perspectives on CBA mean?
Boardman et al present three distinct bureaucratic perspectives on cost-benefit analysis (CBA):
1. Analysts: Adhere to standard CBA principles and focus on allocative efficiency
2. Guardians: Have a controllership orientation and focus on “revenue-expenditure” analysis. Their natural tendency is to equate benefits with revenue inflows to their agency or other governmental coffers, and costs
with revenue outflows from their spending agency or other governmental coffers
3. Spenders: Oriented towards “constituency-support” analysis. Spenders have a natural tendency to regard expenditures on “constituents” as benefits rather
than as costs. Thus, for example, expenditures that generate jobs are regarded as benefits rather than costs, regardless of opportunity cost.
How is the Coquihalla HIghway project used to illustrate something in Boardman et al?
To illustrate how different bureaucratic perspectives interpret benefits and costs: * The project involved constructing a 189-kilometer four-lane divided highway
* It serves as a case study to demonstrate how Guardians and Spenders might interpret CBA results differently from Analysts
Give characteristics of Analysts
- Follow standard CBA methodology
- Primarily concerned with allocative efficiency
- Interpret benefits and costs in line with economic principles
Give characteristics of guardians
- Equate benefits with revenue inflows
- Consider costs as revenue outflows
- Focus on “revenue-expenditure” analysis
Give characteristics of spenders
- Views expenditures partly as benefits
- Consider expenditures by constituents as costs
- Perform “constituency-support” analysis
What is discounting?
It’s when you invest money and it extends over a certain time, it will become worth less. Investment of 100 million today over a course of 20 years: some of it will be discounting, as inflation changes the value of the investment as well. You have to discount what you might spend later on and what you think you get back.
What is overarticulation?
When a cost you assign is too high to the extend where you might not happen to use it anymore.
* 5 people killed but 5 million
* 1 person killed but 1 million, net benefit of 4 mil.
This is uncomfortable because we’re talking about human lives here.
What is the essence of value-focused thinkin according to Keeney (1996)?
a way to channel a critical resource - hard thinking - to lead to better decisions. Better decisions come about both because
of insights provided by the thinking and because of specific procedures that view decisions through
‘ value-focused’ glasses.
What is the procedure of value focused thinking according to Keeney (1996)?
Identifying objectives: discuss about the decision situation
Structuring objectives: filter lists of initial objecrtives into a list of objectives and fundamental objectives.
Creating alternatives: first set of alternatives
decision opportunities: Who should be making decision? control the decision situation to influence the achievement of objectives.
