Cost–benefit analysis (CBA) is a key tool for evaluating policy proposals and promoting informed, evidence-based decision-making. This guide is designed to assist policymakers in effectively applying CBA to the development and assessment of policy proposals.

CBA is a structured approach that assesses the full range of impacts a proposal may have on the community and the economy. It goes beyond immediate or direct effects, financial outcomes, or impacts on specific groups, aiming instead to capture all relevant consequences. Wherever feasible, these impacts are expressed in monetary terms to allow for meaningful comparison of gains and losses. 

The primary objective of CBA is to equip decision-makers with comprehensive and relevant information to support sound policy choices. By converting impacts into present value dollar terms, CBA offers an objective framework for comparing diverse effects, including those occurring over different time periods. 

Even when not all impacts can be fully quantified, CBA remains a valuable tool for structuring analysis and clarifying trade-offs.