Economic policy in practice: social cost benefit analysis

In 2024-2025 this course is scheduled 2 times
Q1 Timeslot C (Cohort ≤ 2022) and Q3, Timeslot C (Cohort 2023)

This course provides students with practical insights into the social cost benefit analysis (SCBA), its embeddedness in welfare economics and the in the policy context.

In the introductory part of the course, students get some knowledge about the basics of social cost benefit analysis, in particular with respect to calculating the direct and indirect benefits of these projects. Furthermore, special emphasis is given to the link of SCBA to the decision making process of policy makers and the policy discussion. As policy considerations are important to generate support for large infrastructure projects if social costs and benefits are known and can be compared to alternative projects. In addition, political considerations can substantively alter the design of a particular project.

In second part of the course, students will use the SCBA methodology as developed by the Central Planning Bureau to undertake their own SCBA analysis. The SCBA developed by students will be in the following areas reflecting faculty specializations (e.g. smart energy, smart mobility, smart systems).

After completion of the course the student is able to:

1. Apply theoretical and conceptual insights on economic and innovation policy to real-life large scale infrastructural projects
2. Understand how economic policy rationales can be operationalized and evaluated based on a social cost-benefit analysis.
3. Apply the method of SCBA to real life projects
4. Provide strategic advice on different options for infrastructure projects based on the SCBA
5. Critically reflect on the value and limitations of the theories, and methods used.
6. Collaborate and plan effectively in groups to design and execute a research project.

You must meet the following requirements

• Registered for a degree programme other than
• HBO-TOP Applied Physics, Pre-Master

• Boardman, A., Greenberg, D., Vining, A., & Weimer, D. (2018). Cost-Benefit Analysis. Concepts and Practice. Cambridge University Press.
• Békés, G., & Kézdi, G. (2021). Data Analysis for Business, Economics, and Policy. Cambridge University Press