TORONTO—Cost-benefit analysis is a powerful tool for guiding climate policy but easily falls prey to two common errors, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“People often compare the wrong things when trying to decide if a policy is worth pursuing,” said Ross McKitrick, professor of economics at the University of Guelph, Fraser Institute senior fellow and author of Apples to Apples: Making Valid Cost-Benefit Comparisons in Climate Policy.
