• 
• 
• 
• 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
  • 
  • 
• 
• 
• 

Chapter 17: Policy Analysis: Cost-Benefit Analysis and Ethical Analysis

Study

Summary

The ethical system most often applied to public policy analysis is utilitarianism, by which actions are justified as producing the greatest net benefit for the society as a whole. As noted in the chapter, this principle undergirds the dominant analytic approaches in the field, such as cost-benefit analysis. In this chapter we discussed several ethical questions that arise in making and implementing public policies, as well as some possible answers to those questions, mostly reflecting a nonutilitarian perspective. Ultimately, however, just as no one can provide definitive answers to these ethical questions in public policy, public officials may face policy questions that have no readily acceptable answers, economically, politically, or ethically. Values and ethical principles are frequently in conflict, and sometimes the policymaker must violate one firmly held ethical position to protect another.

Despite these practical difficulties, it is important for citizens and policymakers to think about policy in ethical terms. Perhaps too much policymaking has been conducted without attention to anything but the political and economic consequences. Of course, such utilitarian values are important bases for evaluating a program, but they may not be the only relevant criteria. Both the policymaker and the citizen must be concerned also with matters of justice and trust in government. Indeed, it may be that justice and social trust ultimately make the best policies—and even the best politics.

Review Questions:

1. What is cost-benefit analysis and what are its key principles?
   


2. Identify and define the key steps involved in using cost-benefit analysis in public sector planning or project evaluation?
   


3. Define net present value, net benefit ratio, and cost-effectiveness analysis and the relationship(s) of one concept to the next.
   


4. What ethical premises are available to guide American policymakers?
   


5. Identify and define the conceptions of fairness and explain how each might be used to justify different kinds of public policies.