Assessment of USAID Guidelines for Cost-Benefit Analysis

Date

December 2022

Location

Global

Contract

In 2015, the USAID/Washington Economic Policy Office, now part of the Center for Economics and Market Development (EMD), issued Guidelines for Cost-Benefit Analyses (CBAs). The Guidelines discussed good practices for developing CBA models and using and disseminating the findings. The Guidelines distinguished between economic and financial analyses. EMD asked Integra to review the 2015 Guidelines for Cost-Benefit Analysis and offer recommendations for revisions and additional topics. The goals were to 1) review the selection of discount rates for economic and financial analysis of USAID investments in developing countries and 2) address current USG guidance on including the social cost of carbon. Additional issues were also identified as needing to be addressed or updated, including 1) the social cost of premature mortality risks, 2) the social cost of premature mortality risks, 3) evaluating biodiversity and other environmental impacts, and 4) integrating or linking to other sectoral and cross-cutting guidance. The team identified other issues and discussed the advantages and disadvantages of various alternatives for formalizing the guidance in USAID policies and procedures or publicizing them more widely.

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