Cost benefit analysis of bioproducts (case studies)

Both policy and business decisions inevitably require difficult trade-offs. If we devote more resources to reducing pollution, we will not be able to use those resources for other purposes of public interest. Similarly if we spend a firm’s reserves for new offices, we will not be able to use those reserves for upgrading the factory machinery equipment. Cost benefit analysis explicitly recognizes these trade-offs, considering whether the benefits are higher than the costs of a particular policy. Therefore, cost-benefit analysis has become a key decision making tool for private sector managers and public sector officials interested in rigorously evaluating the effects of their decisions. The course presents the tools needed to apply cost-benefit analysis in a variety of real-life problems. Though cost-benefit analysis is a useful tool in many situations, it is mainly used in public sector policy and investment analysis appraisal. Upon completion of this course, students will be able to understand the foundations in economics for analysis of costs and benefits and develop the ability to apply these principles in cases related to biotechnological products, where they have to assess all relevant costs and benefits of a particular project, action, policy or program.