Includes bibliographical references and index.

Contents: Foreword by Chris Nash 1. Introduction 2. The Economic Evaluation of Social Benefits 3. The Economic Evaluation of Indirect Effects 4. Opportunity Costs, Market and Shadow Prices 5. Economic Valuation of Non-marketed Goods (I) 6. Economic Valuation of Non-marketed Goods (II) 7. Discounting and Decision Criteria (I) 8. Discounting and Decision Criteria (II) 9. Uncertainty and Risk Analysis 10. Applications 11. Microeconomic Foundations of Cost-benefit Analysis References

This accessible and non-technical introductory text presents the principal methods and key concepts involved in understanding and applying cost-benefit analysis, and demonstrating how to evaluate whether an investment project or policy proposal will contribute to increase social welfare. Gines de Rus incorporates the latest thinking on issues such as the treatment of risk and uncertainty, and the importance of institutional arrangements in ensuring the correct use of the technique.