The importance of economic analysis is widely recognised within the realm of water sensitive cities. Partners in the CRC for Water Sensitive Cities (CRCWSC), including state government agencies, local governments and water utilities, identified an increased capacity for economic analysis as one of their highest priorities. In response, CRC has developed the Investment Framework For Economics of Water Sensitive Cities (INFFEWS), including a BCA Tool and a Value Tool (for estimating non-market values).
This report does not provide comprehensive information about BCA and how to conduct it. Instead, this document aims to:
- Outline the various components of the INFFEWS BCA Tool and explain their relevance to different user groups
- Provide a brief introduction to BCA, including the key challenges of completing a BCA
- Provide information to help organisations make strategic decisions about BCAs – whether to commission a BCA, what is required for a BCA to be reliable and useful, what a manager should ask for when commissioning a BCA, and how to interpret and use the results of a BCA effectively
- Discuss the role of BCA, and economics more generally, in a balanced and systematic process for making decisions about projects and policies.