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Cost-benefit analysis (CBA) is a decision-making process where the expected benefits of an activity are weighed against the expected costs of engagement. There are a variety of choices and methods available when implementing CBA. This can lead to distinct differences in calculated conclusions. In the area of energy and the natural environment such as identifying the quality and amount of natural resources available or being utilized, this methodology continues to be used in a variety of ways (Hanley and Spash 1993). Energy companies often apply CBA to decide if a new energy project should be undertaken (energy exploration, building or modifying energy producing infrastructure, energy technology research and development, etc.). The analysis may be applied for internal use by the company or in response to external regulation. Stakeholders external to the firm (environmental watch groups, regulators, consumers, etc.) often use CBA to evaluate...
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