This course aims to equip students with the knowledge and skills to understand, apply, and critically evaluate cost-benefit analysis (CBA) in public policy decision-making. Students will learn the fundamental purpose of CBA in assessing the social value of government initiatives and master key concepts and tools for evaluating government activities, including methods for handling uncertainty. The course emphasises practical applications through real-world case studies, primarily focusing on energy, environmental, and transportation policies. Students will examine recent CBAs conducted by government agencies, explore key issues such as distributional effects, and develop the ability to communicate CBA findings effectively. By the end of the course, students will be prepared to contribute to informed decision-making in public policy, equipped with a solid understanding of current CBA practices and challenges.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Understand techniques to carry out cost-benefit analysis of programs, policies, and projects.
2. Be able to plan and implement cost-benefit analyses.
3. Demonstrate an advanced understanding of the strengths and limitations of cost-benefit analysis and alternative approaches.
4. Critique cost-benefit analyses prepared by others.
5. Communicate cost-benefit analyses and alternative approaches.

Research-Led Teaching

The course will build off the research of the course convenor and others in the field of energy and environmental economics. The essay component provides a research focus to the assessment structure.

Required Resources

Recommended Resources

Recommended Text:

Boardman, A. E., Greenberg, D. H., Vining, A. R., & Weimer, D. L. (2018). Cost-benefit analysis: Concepts and practice (5th ed.). Cambridge University Press.

Other Relevant Readings:

U.S. Environmental Protection Agency. (2024). Guidelines for preparing economic analyses (3rd ed.). (Report No. EPA-240-R-24-001). Washington, DC.

Revesz, R. L., & Livermore, M. A. (2008). Retaking rationality: How cost-benefit analysis can better protect the environment and our health. Oxford University Press.

Sunstein, C. R. (2018). The cost-benefit revolution. MIT press.

Staff Feedback

Students will be given feedback in the following forms in this course:

• Written comments
• Verbal comments
• Feedback to the whole class, to groups, to individuals, focus groups

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Introduction to CBA in public policy
2	Microeconomic foundations for CBA
3	Identifying benefits & costs, valuation fundamentals, & defining the baseline
4	Discounting and net present value (NPV)
5	The social discount rate, intergenerational equity & basic break-even
6	Valuing non-market goods: revealed preference methods
7	Valuing non-market goods: stated preference methods & benefit transfer
8	Valuing health impacts & the social cost of greenhouse gases
9	Cost analysis in CBA
10	Dealing with risk and uncertainty in CBA
11	Alternative evaluation frameworks and critical evaluation of CBA
12	Distributional analysis and communicating CBA effectively

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Numerical problem sets (3 sets, 5% each, totaling 15%)	15 %	*	*	1,2,5
Blog post	5 %	25/08/2025	29/08/2025	1,2,3,4
Regulatory CBA evaluation and public comment	30 %	24/10/2025	27/10/2025	1,2,3,4,5
Final exam	50 %	*	28/11/2025	1,2,3,4,5

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Active participation in lectures and tutorials is expected.

Examination(s)

The course includes a final exam.

Assessment Task 1

Numerical problem sets (3 sets, 5% each, totaling 15%)

The primary purpose of the numerical problem sets is to ensure students develop a strong command of the fundamental principles and quantitative techniques of Cost-Benefit Analysis (CBA) through practical application.

Each of the three sets will involve primarily numerical problems, which can be solved using Excel or manually. These problems will require the application of core CBA techniques covered in the lectures. Brief conceptual explanations will also be required to accompany the numerical solutions, and students must show their workings. The workload for each problem set is approximately equivalent to 500 words of written work.

To support student learning, feedback on Problem Set 1 will be provided before the mid-semester point. While group discussion of the problem sets is permitted and encouraged, each student must submit their own original work. Specific topics covered, detailed instructions, and due dates will be provided with each assignment as per the course schedule.

Assessment Task 2

Blog post

This assessment is designed to encourage students to actively identify and reflect on real-world policy issues or proposed projects that could significantly benefit from a rigorous Cost-Benefit Analysis. It also serves as an opportunity for students to articulate their initial perspectives and areas of interest related to CBA to a peer audience.

Each student will contribute one blog post of approximately 400 words to the course online forum. The post should clearly identify a specific current policy issue, project, or regulation; explain its suitability for CBA; offer some initial thoughts on the potential major benefits, costs, and affected stakeholders; and conclude with a question or point for discussion by classmates.

Students are also strongly encouraged---though not formally graded for this particular aspect---to read and comment on at least two classmates' posts to foster a learning community.

Detailed guidelines on formatting, platform use, and evaluation criteria will be provided during Week 1.

The ANU College of Asia & the Pacific's Word Limit and Penalty Guidelines applies to this assessment item.

Assessment Task 3

Regulatory CBA evaluation and public comment

This assessment develops students' ability to critically evaluate real-world government Cost-Benefit Analyses (CBAs) and communicate their findings professionally, as one would in a public comment period.

Students will select a government CBA or Regulatory Impact Analysis from a list provided by the instructor. They will prepare a formal comment of approximately 1,500 words (excluding references/appendices). This comment must summarize the policy and CBA, then critically analyze key aspects of the agency's analytical approach and conclusions. The critique should evaluate adherence to best practices (e.g., US EPA Guidelines), identify significant limitations or areas for improvement, and conclude with an overall assessment of the CBA's policy utility.

The submission should be formatted as a professional comment to the relevant agency.

Original work is mandatory; plagiarism will be treated extremely seriously.

Detailed guidelines on CBA selection, comment structure, analytical focus, and evaluation criteria will be provided by Week 4.

The ANU College of Asia & the Pacific's Word Limit and Penalty Guidelines applies to this assessment item.

Assessment Task 4

Final exam

This comprehensive exam assesses applied CBA skills, evaluating conceptual understanding, analytical ability, and interpretation. Students will carry out their own cost-benefit analysis using information provided in the exam by applying concepts covered in the entire course. Writing time is 180 minutes. The exam will be fully remote and administered on Proctorio.

Further details will be provided in the latter half of the semester.

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

Individual assessment tasks may or may not allow for late submission. Policy regarding late submission is detailed below:

• Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or partthereof. Late submission of assessment tasks is not accepted after 10 working days after the due date, or on or after the date specified in the course outline for the return ofthe assessment item. Late submission is not accepted for take-home examinations.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information. In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service — including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes. Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students