SCBAEstimated Reading Time: just 1 min

A Social and Environmental Cost-Benefit Analysis (SCBA) is a framework to evaluate the impacts caused by an urban development project as well as by a company’s activities.

SCBA makes a balance between
Financial Components
Social and Environmental Consequences

Financial Components are for instance:
• Revenues
• Investment Costs
• Profits
• Taxes and Fees

Social and Environment Consequences are an increase/reduction, for instance, in the level of:
• Noise
• Pollution
• Visual blight
• Congestion
• Safety
• Travel Times
• Spatial Quality
• Health
• Market Impacts
• Legal Aspects

The balance between Financial Components and Social and Environment Consequences helps the company to make informed decisions reflecting the value attached to the caused effects of its activities.

SCBA is based on 2 main activities:

1. Cost and Benefits Evaluation: this is based on 3 types of Effects:
– Direct: these are the costs and benefits that can be directly linked to the company or its stakeholders (for instance a new manufacturing process can be dangerous for the employees)
– Indirect: these are the costs and benefits that are passed on to the producers and consumers outside the market with which the company is involved (for instance a new plant can be dangerous for the people living close to it)
– External: these are the costs and benefits that cannot be passed on to any existing markets because they relate to issues as:
• Environment (for instance Noise or CO2 emissions)
• Safety (for instance Traffic or External Security)
• Nature (for instance Biodiversity and Dehydration)

2. Effects Quantification and Monetization
The output of an SCBA includes:
• A comparison of the different effects
• A description of the effects that cannot be quantified and monetized
• A list of the distribution of costs and benefits
• A list of alternatives to the current activities/solutions
• A list of the uncertainties and risks

Nicola Zaffonato Administrator

Business Strategy | Product Marketing | Executive Master eCommerce Management | Business Innovation Master | MSc

I am driven by my personal growth and of people/contexts that surround me.

I followed a professional path in Valentino Fashion Group and Luxottica during which, thanks to the ability to understand different businesses and interests, I was able to succeed in Operations, Merchandising and Retail.

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