What is the value of a policy proposal?
Kirsten Jensen, the New Zealand Treasury
Cost-benefit analysis (CBAx) is an important component of good policy advice, setting out not just what a proposal will cost, but the value it will achieve. It helps identify the benefits of a policy, quantify them (put numbers against them) and monetise them (describe them as a dollar value). CBAx is a tool created by Treasury to conduct cost-benefit analysis.