Cost–benefit analysis

Abstract

Cost and benefit analysis (CBA) is a widely used approach for assessing the costs and benefits of projects and investments. In the energy sector CBA helps evaluate the economic feasibility of energy-related initiatives such as renewable energy investments and energy efficiency measures. By comparing costs and benefits decision-makers can make informed choices. However CBA has limitations including the need for longer time horizons and careful selection of reference scenarios. Despite these limitations CBA remains attractive for addressing budget constraints and maximizing societal welfare and economic efficiency. © 2025 Elsevier B.V. All rights reserved.