Assumptions
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Assumptions are usually the weakest point of any BCA since they are often subjective in nature. Economists commonly have little idea about basic biology, so assumptions made about the ecosystem could oversimplify the true nature of the problem and must be examined. Biologically and ecologically significant factors may be excluded from the analysis because they are not perceived as having a direct effect on costs and benefits.




When examining assumptions in a BCA:

check that all assumptions are clearly stated;

determine if the analysis is too narrow in its approach; and

check that assumptions are supported by theoretical, experimental, observational or anecdotal evidence.

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David Adamson