Cost Benefit Analysis (CBA):
Cost benefit analysis is the most comprehensive analytical tool available to an investor or policy maker when assessing proposals and choosing between different options. CBA provides a framework that allows for the consideration of both monetised and non-monetised costs and benefits, because it acknowledges that investment and policy decisions based exclusively on profit motivations often result in unfavourable effects.
KPMG’s Infrastructure, Public Policy and Strategy team will help you estimate the value of the most important costs and benefits of your proposal. The Cost Benefit Analysis will thus allow for the comparison and ranking of competing projects or alternatives. In Cost Benefit Analyses, KPMG’s Infrastructure, Public Policy and Strategy team will take into consideration opportunity costs and adopt an incremental approach and the long-term perspective.
Why carry out a Cost Benefit Analysis?
- A CBA can help you to uncover costs and benefits that go beyond the obvious or immediate.
- A CBA provides a structured framework to compare and rank alternatives with different qualitative outcomes – such as health vs educational benefits – thus simplifying decision making.
- A CBA can help you prioritise alternatives so that you can focus on the projects which yield the most value first.
KPMG’s Infrastructure, Public Policy and Strategy team has extensive experience in Cost Benefit Analysis across different types of projects and industries.
Economic Impact Analysis (EIA):
An organisation’s value to an economy, goes beyond its turnover or the number of people it employs. Economic Impact Analysis helps quantify the contribution of your organisation, event, investment proposal, or industry, to the overall economy. KPMG’s Infrastructure, Public Policy and Strategy team can help estimate the additional value created by your project, business, or sector on the economy’s employment, household income, gross value added and government revenues, by assessing the direct, indirect and induced effects generated by your activities.
Why carry out an Economic Impact Analysis?
- An EIA can help stakeholders – such as government bodies and regulatory authorities, understand the interlinkages between businesses and economic sectors, and quantify the total value of your contribution to the economy.
- An EIA can support your planning and decision-making processes by quantifying the expected future economic impact of competing proposals to help you make the right choice.
- An EIA can be used as an effective tool to enhance communication with the community.
KPMG’s Infrastructure, Public Policy and Strategy team have extensive experience in carrying out Economic Impact analysis for different industries and investment proposals.
Regulatory Impact Assessment (RIA):
The objective of regulations is generally to achieve an intended goal. However, regulations can sometimes create an unnecessary bureaucratic burden and result in other accidental negative consequences, such as decreasing economic competition or putting certain segments of society at an unintended advantage or disadvantage.
KPMG’s Infrastructure, Public Policy and Strategy team can carry out a Regulatory Impact Assessment in a systemic way to critically assess the positive and negative effects of proposed and existing regulations and non-regulatory alternatives. A Regulatory Impact Assessment encompasses a range of methods and is an important element of an evidence-based approach to policy making.
- An RIA helps define the problem, outline the current regulations, and show why action may be necessary.
- An RIA lists the alternative regulatory and non-regulatory options.
- An RIA helps quantify the impact of the different options.
- An RIA documents the consultation process with the different stakeholders.
- An RIA considers the regulations and tools available for the policy to be adhered to. The RIA framework can also identify and inform those responsible for regulatory actions.
Why carry out a Regulatory Impact Assessment?
- A Regulatory Impact Assessment will provide a clear explanation of the regulation, its purpose, the analysis substantiating it and its expected impacts.
- A Regulatory Impact Assessment will expose the impacts and linkages among different policies and give decision makers the capacity to weigh trade-offs.
- A Regulatory Impact Assessment can avoid costly policy mistakes which too often result in economic and reputational damage.
KPMG’s Infrastructure, Public Policy and Strategy team have extensive experience in carrying out Regulatory Impact Assessments.
KPMG brings together economists and specialists in strategy and public policy to provide you with tailored policy solutions and business advice.
KPMG will provide you with tailored policy solutions and business advice.