The Concept of Standing in Benefit-Cost Analysis

It is said that benefit-cost analysis adds up impacts “to whomsoever they accrue”. But in practice that general guidance is more complex and it is the issue of “standing” that defines more precisely whose benefits and costs are to be counted. As in law, where to bring a suit one must have “standing” before the court; so too in benefit-cost analysis must conditions be described for what things, and for whom benefits and costs count. Key issues involve not only whose preferences count (should “foreigners”?), but also which preferences (gains to criminal activity) count?) As with law, some answers are not clear-cut but can create useful and informative class discussion on sensitive topics. This article is both informative for practitioners but useful as a teaching tool