This is the first in a series of four blogs featuring key excerpts from the writings of our founder and past president, Richard Zerbe. His insights shaped the foundation of our association and remain relevant to today’s challenges. We hope these selections offer valuable perspectives to all members.
It is useful to date the major changes in Cost-Benefit Analysis (CBA) from the publication of the 1979 work of Kahneman and Tversky (1979) and the subsequent creation of the Society for Benefit-Cost Analysis (SBCA) - which occurred at a 2007 meeting arranged by the Evans School at the University of Washington at which we proposed to form a Society for Benefit Cost Analysis - with a concomitant Journal. In using the Benefit-Cost Analysis (BCA) terminology we thought to distinguish BCA from its CBA roots in engineering. This distinguishment aimed to provide a more economic flavoring to the name and to practice. I suggest BCA can be usefully seen as a further development or evolution of CBA. Table 1 shows the differences.
The new White House “Frontiers” report, 
The 2024 CBA Forum, held by The Economic Society of Australia New South Wales (ESANSW) earlier this year, brought together some of Australia's brightest minds in economic analysis, policy evaluation, and decision-making. The presentations - a mix of keynotes, panel discussions, and case studies - provided updates on state and national guidelines together with sessions on: Health, Justice, Water, Transport, Environment, Energy, First Nations and Carbon values.
As a community of practice, we have the opportunity and even the responsibility to provide input during comment periods for federal and state agencies rule making prior to becoming entrenched in agency policy and application tools. One of these opportunities is currently open in the Federal Register for the US Army Corps of Engineers. The Army has broad responsibility and authority to build, maintain, enhance, and manage flood protection and reservoir projects across the country. The Army has been using a form of benefits exceeding costs test since the introduction of their first projects in the early 1900’s. The 2020 Water Resources Development Act instigated a re-evaluation of what is included in the army’s efficiency analysis and references many of the issues addressed at the last several SBCA conferences. Social and environmental costs are being discussed and how these and other concept can and should be quantified, qualified, and considered in alternatives analysis and final funding processes. This (SBCA) community of practice’s expertise on these topics, as well as the technical mechanics of BCA, valuation methods, and social welfare optimization make each of you a valuable contributor for the army as they collect comments and information to help them formulate practices and rules. Please consider reviewing the current solicitation for comments to ensure, those that know and do, are providing input, and that as a community we are helping guide the framework of the ecosystem within which many, with less experience and training, will be asked to participate on the project level.