Course overview
- Study period
- Semester 2, 2025 (28/07/2025 - 22/11/2025)
- Study level
- Postgraduate Coursework
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Economics School
Use of techniques of applied welfare economics and investment appraisal to undertake benefit/cost analysis of public and private sector projects, using spreadsheets.
Cost-Benefit Analysis (CBA) is fundamental to both implicit and explicit decision-making processes. ECON7740 equips students with the essential skills and tools to evaluate the costs and benefits of decisions, projects, and policies. By the end of the course, students will be able to:
- Assess whether a project is justifiable by comparing its costs and benefits.
- Compare alternative projects or policies to support optimal resource allocation.
Throughout the course, students will apply economic theories and concepts from their prior studies within a CBA framework. ECON7740 addresses key considerations such as handling risk and uncertainty, accounting for externalities, and valuing non-market costs and benefits. The course also explores the intersection of ethical principles with real-world social and economic issues and examines the ethical implications of applying CBA in policy and practice.
Assessment and Learning Approach:
The course emphasises practical application. Students will engage in real-world scenarios, using their knowledge and skills to conduct meaningful analyses. They will be introduced to spreadsheet tools (Excel) for performing CBAs, with basic Excel proficiency assumed. The final assessment involves applying CBA theory to an advanced case study, integrating all aspects of the course content.
Course requirements
Assumed background
Proficiency in basic Excel spreadsheeting is highly recommended. Students are encouraged to review the Excel training resources provided by the library services found at: ﾠSoftware and training resources - Library - University of Queensland (uq.edu.au)
Microsoft Excel is required for this course. Students can access a free version of Office 365 here: ﾠOffice 365 for personal use - my.UQ - University of Queensland
Students are also expected to be familiar with various writing styles. Please refer to the following information provided by the library servicesﾠshould you have difficulties identifying the appropriate format: ﾠAssignment types - my.UQ - University of Queensland
Before enrolling in this course, you are advised that it is important to complete the prerequisite course(s) listed in this course profile. No responsibility will be accepted by UQ School of Economics, the Faculty of Business, Economics and Law or The University of Queensland for poor student performance occurring in courses where the appropriate prerequisite(s) has/have not been completed, for any reason whatsoever.
Prerequisites
You'll need to complete the following courses before enrolling in this one:
ECON2010 or 7000 or 7002 or 7010 or 7011
Incompatible
You can't enrol in this course if you've already completed the following:
ECON2101, ECON3220
Course contact
School enquiries
Student Enquiries, School of Economics
All enquiries regarding student and academic administration (i.e. non-course content information, e.g., class allocation, timetables, extension to assessment due date, etc.) should be directed to enquiries@economics.uq.edu.au.
Enquiries relating specifically to course content should be directed to econ7740@uq.edu.au.
Course staff
Course coordinator
Professor Flavio Menezes
Tutor
Mr Md Khairul Hidayatullah Hj Basir
Ms Swe Zin Linn
Mr Linn Htet Oo
Miss Natasha Rose Rao
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Lectures will be delivered in person for Semester 2, 2025. Lectures will still be recorded. However, tutorials are not recorded for this course.
Students should refer to the timetable prior to the commencement of classes to ensure that they have the most up to date information.
Tutorial Preferencing:
Students are required to submit assessment either prior or during their allocated tutorial. All students must enrol in a tutorial to receive these marks.ﾠ
Please refer to My Timetable (available via your my.UQ dashboard) for more information on the tutorial preferencing and allocation process.ﾠTutorials commence in Teaching Week 2.
The timetable is published through the UQ Public Timetable found in the APPs section of myUQ.ﾠStudents should refer to the timetable prior to the commencement of classes to ensure that they have the most up to date information, as from time to time late room changes may occur.ﾠThe timetable can be downloaded here:ﾠPublic Timetable.
Public Holidays: Wed 13 August - Royal Queensland Show (EKKA), Mon 6 October - King's Birthday. Please note that there will be no live lecture in Week 10. Instead, a pre-recorded lecture will be made available online for you to view at your convenience. To support your learning, additional consultation time will be offered on Tuesday, 7 October, from 10:00 AM to 12:00 PM. This session will be dedicated to addressing any questions or clarifications related to the pre-recorded lecture.
Mid-Semester Break: 29 September - 03 October. Semester 2 classes recommence Tuesday 07 October.ﾠ
Aims and outcomes
This course provides students to engage in practical applications of cost benefit analysis. This course is intended to equipﾠstudents with advanced conceptual, analytical, and critical thinking skills to undertake a CBA.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Construct, interpret and evaluate CBA in a variety of real-world situations.
LO2.
Implement non-market valuation methods to correct market failures, including those of a social and/or intangible nature.
LO3.
Categorise and evaluate risk and uncertainty in decision-making within a CBA framework.
LO4.
Deconstruct and analyse distributional impacts of a policy or project on relevant stakeholders.
LO5.
Critically examine ethical and social perspectives of decision-making and its role in CBA.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Tutorial/ Problem Set | Tutorial Exercises | 10% (best 8 of 10) |
Submitted during allocated tutorial time. |
| Quiz | Online Quizzes | 30% (2 x 15%) |
Quiz 1 5/09/2025 3:00 pm Quiz 2 24/10/2025 3:00 pm |
| Presentation | Pitch Deck Group Presentation | 20% |
10/10/2025 3:00 pm |
| Project | Individual Case Study in Applied Cost-Benefit Analysis | 40% |
10/11/2025 3:00 pm |
Assessment details
Tutorial Exercises
- Mode
- Written
- Category
- Tutorial/ Problem Set
- Weight
- 10% (best 8 of 10)
- Due date
Submitted during allocated tutorial time.
Task description
Students will be required to submit solutions to computer-based exercises, case studies and short-answer questions as specified in Blackboard. Weekly tutorial sessions begin in week 2. Details on submission of tutorials can be found on the Blackboard website.
There will be 10 weekly tutorial session submissions for which you are expected to prepare and submit a set of fairly straight-forward Excel-based exercises. In each session, a tutor will work through that week's exercise 'live' and, if time permits, cover a few other topics of relevance. Only the best 8 of the 10 tutorial submissions will count towards your overall results.
Students will receive up to 10% of the final mark through 'active participation' in these tutorial sessions. 'Active participation' requires students to submit their Excel exercises via the link on the course website.
Artificial Intelligence (AI) and Machine Translation (MT) are emerging tools that may support students in completing this assessment task. Students may appropriately use AI and/or MT in completing this assessment task. Students must clearly reference any use of AI or MT in each instance.
A failure to reference generative AI or MT use may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Students can submit their attempt at the tutorial exercises either prior or during their enrolled tutorial. The deadline for each student is at the end of their enrolled tutorial. Note: the submission is not marked based on correct content. Students who submit prior to their tutorial should check the solutions when the solutions are released on Blackboard
Submissions via email are not accepted.
Deferral or extension
You cannot defer or apply for an extension for this assessment.
Note that only the best 8 of the 10 tutorial submissions will count towards your overall results. As the tutorial exercises form a series of continuous assessment, students are encouraged to submit all possible attempts throughout the semester.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
No late submissions or extensions will be accepted. Submissions via email will not be accepted.
Online Quizzes
- Mode
- Activity/ Performance
- Category
- Quiz
- Weight
- 30% (2 x 15%)
- Due date
Quiz 1 5/09/2025 3:00 pm
Quiz 2 24/10/2025 3:00 pm
Task description
Students are required to complete two (2) online quizzes covering both numerical and theoretical applications of CBA at regular intervals throughout the course. There will be two quizzes worth 15% each (total of 30% for the course).
· Each quiz can contain multiple choice, short answer or numerical questions.
· Students will have 120 minutes to complete each online quiz.
· The quizzes will be conducted in weeks 6 and 12.
Submission of the quizzes is via the Blackboard website. Details on the content of each quiz will be provided on the Blackboard website.
Access to Excel is required for the online quizzes. If you are not using a university computer, please ensure you add the UQ blackboard website and downloads to your "Trust Centre". Otherwise, you may have difficulties opening or downloading files.
Artificial Intelligence (AI) and Machine Translation (MT) are emerging tools that may support students in completing this assessment task. Students may appropriately use AI and/or MT in completing this assessment task. Students must clearly reference any use of AI or MT in each instance.
A failure to reference generative AI or MT use may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
To be submitted via Blackboard. See Blackboard for submission details.
Deferral or extension
You may be able to apply for an extension.
The maximum extension allowed is 7 days. Extensions are given in multiples of 24 hours.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
Pitch Deck Group Presentation
- Mode
- Oral
- Category
- Presentation
- Weight
- 20%
- Due date
10/10/2025 3:00 pm
Task description
Students will work in groups to complete a Pitch Deck Presentation centred around a topic provided in week 6. The topic will be introduced by an Industry Expert in lecture 6. Groups must be 3 - 4 students.
A strict deadline for the creation of groups will be posted on Blackboard - no changes are allowed after this date regardless of circumstances. Once the deadline passes any students who have not joined a group will be automatically allocated.
The submission will be a video recording. All students must show their student ID on the first slide. All students must show their face clearly in the recording when speaking.
Group (3-4 students) Each student must present for a minimum of 1.5 minutes as part of the assessment task. The MAXIMUM acceptable recording length for a group of 3 students is 9 minutes. A group of 4 students is 10 minutes. No more than 12 slides. A penalty will be applied for exceeding or falling short of these limits and requirements.
Buddycheck will be used as part of this assessment. See task sheet for details. A deadline for completion will be provided on BB.
Slides must be submitted the PowerPoint slides via TurnItIn through the Online Submission link under the Assessment section of the Course Blackboard site. The presentation recording must be submitted via the Blackboard Assignment submission tool. Only one student needs to submit on behalf of the group. Students are responsible for ensuring one student from the group submits presentation slides and recording.
Artificial Intelligence (AI) and Machine Translation (MT) are emerging tools that may support students in completing this assessment task. Students may appropriately use AI and/or MT in completing this assessment task. Students must clearly reference any use of AI or MT in each instance.
A failure to reference generative AI or MT use may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Blackboard. Submissions via email are not accepted.
Deferral or extension
You cannot defer or apply for an extension for this assessment.
No Extensions are given for the Group presentation - as extensions for groupwork will impact the group submission.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Penalties will be applied unless there is sufficient evidence that the late submission is beyond the control of the student. Course coordinators decide on the evidence presented whether they would accept a late submission.
Individual Case Study in Applied Cost-Benefit Analysis
- Mode
- Written
- Category
- Project
- Weight
- 40%
- Due date
10/11/2025 3:00 pm
Task description
Students are required to complete a take-home case study assignment, which includes both a spreadsheet and a written report. You will have two weeks to complete the assignment.
The assignment will be released no later than 25th October.
Submission must be made electronically via the Online Submission link in the Assessment section of the Course Blackboard site.
Further details will be announced on Blackboard.
Artificial Intelligence (AI) and Machine Translation (MT) are emerging tools that may support students in completing this assessment task. Students may appropriately use AI and/or MT in completing this assessment task. Students must clearly reference any use of AI or MT in each instance.
A failure to reference generative AI or MT use may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Blackboard. Submissions via email are not accepted.
Deferral or extension
You may be able to apply for an extension.
The maximum extension allowed is 14 days. Extensions are given in multiples of 24 hours.
Extensions may impact your ability to graduate in a given semester. While we give a maximum 14 days extension please be aware that if you wish to graduate on time your extension may be for a shorter duration to ensure your grade is processed.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Penalties will be applied unless there is sufficient evidence that the late submission is beyond the control of the student. Course coordinators decide on the evidence presented whether they would accept a late submission.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0% - 29% |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30% - 46% |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47% - 49% |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50% - 64% |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65% - 74% |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75% - 84% |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85% - 100% |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
A student’s final overall end of semester percentage mark will be rounded to determine their final grade. For example, 64.5% rounds to 65%, while 64.4% rounds to 64%.
ﾠ
Supplementary assessment
Supplementary assessment is available for this course.
Additional assessment information
Using AI at UQ
Visit the AI Student Hub for essential information on understanding and using Artificial Intelligence in your studies responsibly.
Plagiarism
The School of Economics is committed to reducing the incidence of plagiarism. You are encouraged to read the UQ Student Integrity and Misconduct Policy available in the Policies and Procedures section of this course profile.
The Academic Integrity Module (AIM) outlines your obligations and responsibilities as a UQ student. It is compulsory for all new to UQ students to complete the AIM.
Referencing and Citing
APA is the required referencing style in this course.
Assignments must be substantially your own work. If you wish to report another author’s point of view you should do so in your own words, and properly cite the reference in accordance with the school style. Direct quotations should be used sparingly, form a small part of your work, and must be placed in quotation marks and duly referenced.
Any material taken from texts and other references, including electronic resources, CD‐ROMS, and the Internet, must be acknowledged using the accepted School style.
Students are encouraged to discuss issues that arise in this course together. However, the written work you submit must be entirely your own. Similarly, you must not help another student to cheat by lending assignments (present or past).
For more information on referencing styles, visit the library or see https://guides.library.uq.edu.au/referencing
If you do not reference the materials used in your assignment correctly, you could be found guilty of academic misconduct. Please see this link for more information: https://my.uq.edu.au/information-and-services/manage-my-program/student-integrity-and-conduct/academic-integrity-and-student-conduct
For more information on assessment, please review the UQ Assessment Policy.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Find the required and recommended resources for this course on the UQ Library website.
Own copy required
You'll need to have your own copy of the following reading resources. We've indicated below if you need a personal copy of the reading materials or your own item.
| Item | Description |
|---|---|
| Book |
Social cost benefit analysis and economic evaluation
by Bonner; Suzanne - 2022 Publisher: University of Queensland ISBN: 9781742723709 |
Additional learning resources information
This course leverages off the free open access textbook found here: Social Cost Benefit Analysis and Economic Evaluation (pressbooks.pub)
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 (28 Jul - 03 Aug) |
Lecture |
Introduction and Overview Overview of the course, definition and purpose of CBA, net social benefit, economic principles. |
Multiple weeks From Week 2 To Week 13 |
Tutorial |
Tutorial Tutorials will run from week 2 - 13. During the tutorial students will utilise spreadsheets to conduct CBA, complete worked examples from the relevant textbooks and prepare case study exercises. |
Week 2 (04 Aug - 10 Aug) |
Lecture |
Discounting and Decision Rules How to account for future costs and benefits; The social discount rate; Defining and calculating: Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR); Using NPV, IRR and BCR as decision rules |
Week 3 (11 Aug - 17 Aug) |
Lecture |
More on Discounting and Decision Rules Challenges of comparing NPV, IRR and BCRs including mid year and beginning of year discounting, comparing projects different lives, other complications in CBA. |
Week 4 (18 Aug - 24 Aug) |
Lecture |
Identifying referent groups and undertaking market analysis Identifying who's benefits and costs matter, applying Market perspective and Investor perspective to CBA. |
Week 5 (25 Aug - 31 Aug) |
Lecture |
Predicting and Monetising Impacts Using Markets Introduce conceptual framework to consider efficiency (social) analysis |
Week 6 (01 Sep - 07 Sep) |
Lecture |
Predicting and Monetising Impacts Using Markets (Continued) Identify when to use a shadow price; Understand the difference between prediction and monetisation.; Understand the process of predicting and monetising where appropriate; Identify sources of bias in predicting and monetising impacts of a CBA; Describe methods for predicting impacts using benefit transfers and their advantages and disadvantages. |
Week 7 (08 Sep - 14 Sep) |
Lecture |
Social CBA (Efficiency) Define economic efficiency and explain the real-world challenges in achieving it; Understand the role of shadow prices in enhancing economic efficiency within CBA; Identify and apply shadow prices by adjusting observed prices in markets affected by distortions; Differentiate between corrective and distortionary taxes and subsidies, and their implications for efficiency; How to undertake a CBA from a social (efficiency) perspective. |
Week 8 (15 Sep - 21 Sep) |
Lecture |
Social and Disaggregated CBA Describe the distribution of costs and benefits from the social CBA; Calculate the benefits and costs for the relevant referent groups (those with standing) in a CBA. |
Week 9 (22 Sep - 28 Sep) |
Lecture |
Ethical and Social Issues in CBA Analyse how ethical concepts intersect with real-world social and economic issues; Apply the three major ethical theories—utilitarianism, deontology, and virtue ethics—to economic decision-making; Evaluate the ethical implications of Cost-Benefit Analysis in policy and practice; Reflect critically on ethical choices and their broader societal consequences. |
Mid Sem break (29 Sep - 05 Oct) |
No student involvement (Breaks, information) |
mid-semester break Identify and address uncertainty to estimate the net social benefit in CBA; Evaluate risk in CBA using tools such as expected value analysis; Understand how risk preferences influence decision-making in the context of CBA; Conduct a sensitivity analysis using Microsoft Excel; Communicate sensitivity analysis results clearly and effectively. Due to the King's Birthday holiday, this lecture will be pre-recorded. |
Week 10 (06 Oct - 12 Oct) |
Lecture |
Uncertainty and Sensitivity Analysis Identify and address uncertainty to estimate the net social benefit in CBA; Evaluate risk in CBA using tools such as expected value analysis; Understand how risk preferences influence decision-making in the context of CBA; Conduct a sensitivity analysis using Microsoft Excel; Communicate sensitivity analysis results clearly and effectively. Due to the King's Birthday holiday, this lecture will be pre-recorded. |
Week 11 (13 Oct - 19 Oct) |
Lecture |
Non-Market Valuations and Shadow Pricing Define Total Economic Value (TEV) and its components (use value, option value, non-use value); Differentiate public, private, and mixed goods in the context of valuation; Explore valuation techniques: Alternative pricing methods (e.g., cost-based, market proxies) and Revealed vs. stated preference methods; Apply and assess non-market valuation methods in real-world scenarios. |
Week 12 (20 Oct - 26 Oct) |
Lecture |
Non-Market Valuations and Shadow Pricing (Continued) Define Total Economic Value (TEV) and its components (use value, option value, non-use value); Differentiate public, private, and mixed goods in the context of valuation; Explore valuation techniques: Alternative pricing methods (e.g., cost-based, market proxies) and Revealed vs. stated preference methods; Apply and assess non-market valuation methods in real-world scenarios. |
Week 13 (27 Oct - 02 Nov) |
Lecture |
Writing a CBA report How to present and interpret results of CBA for decision-support: guidelines for writing of case study reports. |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments for Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.