Question

After Janet Napolitano’s 2013 announcement of the UC Carbon Neutrality Initiative several analyses were conducted concerning the initiative. Most notably, The TomKat Communications Working Group claims that Carbon Neutrality can be achieved by 2025 for only $120 million dollars. Assume we are only concerned with the time frame of now until 2025. Does this constitute a cost benefit analysis? If so, briefly explain any underlying assumptions. If not, explain what additional information would be required for a CBA.

Answer 1

Cost Benefit analysis is a process of analyzing decisions. It must include three things:

1) COST

2) Dollar value of BENEFIT

3) ALTERNATIVE COMPARISON

From the question, it is found that only COST of $120 million dollars is given. We need a way to calculate BENEFIT arising from the initiative and also we need to compare it with other ALTERNATIVE plan of action.

Unless , we can do that we CANNOT perform COST BENEFIT ANALYSIS for the above initiative.