Step 3: Assess the impacts
The third step involves determining performance values, compiling results and monetising results if you decide to do the optional CBA.
1. Determining performance values
The next step in the process involves determining the performance values for the proposed or measures.
Detrimental performance (e.g. monetary costs, harmful emissions or health effects) is recorded in negative numbers, while conversely, all favourable performance (e.g. revenue, increased employment, beneficial health effects) in positive numbers.
The units for the performance values may vary across the different effects, but each effect must be recorded in the same unit (e.g. tonnes of CO2 equivalent per annum).
Performance values for qualitative effects are assigned within a predefined scale (e.g. -10 to 10).
Future monetary effects must be discounted, to account for the lesser value of future costs/benefits compared to those occurring in the present (e.g. a certain amount of money is worth more today than the same amount in the future).