367. BCA challenges: over-optimism

On 7 February 2022, I presented an online workshop called “Benefit-Cost Analysis: Traps, Challenges and Best Practice” as part of the Australasian Agricultural and Resource Economics Society Annual Conference. It addressed a range of challenges and complexities that arise when applying BCA in practice. Drawing from my 12-week online micro-credential course on BCA, I discussed a selection of challenges and proposed appropriate ways to address them.

I’m going to present some of the workshop recording as Pannell Discussions, in a series of segments. The first one is on avoiding over-optimism in the assumptions that are used in the BCA. This is a ubiquitous problem in BCA, and indeed in any other type of project evaluation. Dealing with it needs a multi-pronged approach.

Most of these segments will be about 10-15 minutes long, but this one is longer as there is so much to say about over-optimism. I think it’s one of the most important topics in BCA.

Brief introductory course on BCA

If you are new to BCA, here is a very introductory course, in 10 videos totalling 1 hour 14 minutes.

Comprehensive course on Applied BCA

I invite you to consider enrolling in my 12-week online course on Applied Benefit: Cost Analysis. Build your BCA expertise and gain the practical skills you need to undertake a complex Benefit: Cost Analysis. Online: high-quality video lectures and interviews, live workshops. No existing economics background required.

Discounts are available for bulk enrolments and for enrolments from selected countries. Bursaries (with a discount of more than 90%) are also available for enrolments from selected countries.

For details of content, timing, pricing and how to apply for discounts or a bursary download this flier:

Applied BCA Flier v7

The course will run again soon, starting on 28 February 2022. To enrol click here or on the image at left.

“A fantastic program and course. It is by far the best course I have been involved in. I learned so much and there is still lots to learn which you have shared with links so I can return to refresh/learn as needed.”

“Essential for new BCA users.”

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