Question

Describe the differences between cost-effectiveness analysis and cost-benefit analysis as they pertain to the issue of building a pipeline from Alberta to B.C for the purpose of exporting bitumen to Asian markets.

Answer 1

Answer:-

Cost Benfit Analysis means comaparing the cost which is being invested with Benefits.

wheare as cost effective analysis means the output which we have received from cost which are being invested.

Advantage of cost benefit analysis over cost effective analysis is that in cost analysis benefit are expressed in monatary terms rather not it units which we does clacualate in Cost effective analysis. howevr other are below examples,

easy to understand

accurate to understand.

B)Cost effective ness analysis is accountable to calculate the cost which is being reduced not in montary term but in units which is being produce by making in investment.as simple if make an investment by which cost remains same and we are able to produce a good output in compare of others previous output whihc is comes under cost effectiveness.

Diffeerence between.

one is calcuate the montary bennifit and other calculate the output which are being produce from cost which is being invested.

cost benefit has a larger implication however cost eeffective analysis comes after cost benefit.

Cost-effectiveness analysis is the cost incurred in carrying out an activity like cost incurred to preserve biodiversity whereas benefit-cost analysis tries to project the benefit of preservation of biodiversity over the cost incurred. So cost effectiveness helps to understand the importance of preserving the biodiversity beyond monetary terms like necessity to maintain the balance of life whereas B:C analysis quantifies if it is worth to take up project in terms of monetary terms.