Question

What are the conclusions of cost-benefit analyses of global climate change? What are some potential problems with these analyses?

Answer 1

Cost benefits analysis for global climate change:

1. Cost benefit analysis can be defined as the cost incurred in a project verses the benefit it can take out of the same. This can be used for major business decision making.
2. Since in this new era of business there has been tremendous climate change in the cost benefit analysis has also had to be re-evaluated to suits the changing business needs.
3. Global climate change can be defined as business going international crossing borders. Hence for different business situations the cost benefit analysis had to be done differently.
4. Hence alternatives have been introduced in cost benefit analysis like changes in normative analysis, having a standard interpretations etc to make it a successful tool.
5. The usage of dollar impacts in order to check the economic status and interest rate changes has been a major change due to this climate change policy.

Potential Problems on this analysis are explained below:

1. The main problem with this would be when policies differ between different countries.
2. Deciding on what is more valuable differs from individual to individual and hence keeping a base for calculation is different.
3. Utility scale agreement by individual developing the policy has also been a challenge.