The role of rights in benefit cost methodology: The example of salmon and hydroelectric dams

Benefit cost analysis is a well-established technique for assessing the imp acts of proposed actions. Accurate benefit cost analysis is essential to ma king informed decisions through an understanding of the trade-offs involved in alternative actions. This Article presents a methodology for improving current benefit cost techniques and hence the usefulness of benefit cost an alysis to decisionmakers. The proposed methodology is based on recognition of the roles of legal rights and psychological expectations in benefit cost analysis. Proper consideration of these rights and expectations is critica l to an accurate determination of how benefits and costs are measured and w hose interests are included in the analysis. Addressing these issues will p rovide more accurate and comprehensive information to decisionmakers. Appli cation of the proposed methodology may significantly affect the outcome of a benefit cost analysis and hence impact the decisionmaking process.