Social Cost-Benefit Analysis In Project Evaluation: A Practical Framework For Decision Making

A large number of publications on social cost-benefit analysis have seen the light during the last decade. Most of these have treated the social cost-benefit analysis in theory but did not show how the theory should be applied in practice. The application of social cost-benefit analysis is important in a small country such as South Africa where resources are limited. It is also important that a generalised method be found that can be applied for project evaluations in all sectors of the economy. Such a method will ensure that all projects are comparable in order to make sound decisions. This paper proposes such a practical framework.