why is cost-benefit analysis considered a utilitarian model of evaluation
Cost–benefit analysis Cost–benefit analysis is often used by organizations to appraise the desirability of a given policy. It is an analysis of the expected balance of benefits and costs, including an account of foregone alternatives and the status quo. CBA helps predict whether the benefits of a policy outweigh its costs, and by how much relative to other alternatives, so that one can rank alternate policies in terms of the cost–benefit ratio.[3] Generally, accurate cost–benefit analysis identifies choices that increase welfare from a utilitarian perspective. Assuming an accurate CBA, changing the status quo by implementing the alternative with the lowest cost–benefit ratio can improve Pareto efficiency.[4] While CBA can offer a well-educated estimate of the best alternative – perfect appraisal of all present and future costs and benefits is difficult –, perfection in terms of economic efficiency and social welfare are not guaranteed.[5]
Two-level utilitarianism Two-level utilitarianism is virtually a synthesis of the opposing doctrines of act utilitarianism and rule utilitarianism. Act utilitarianism states that in all cases the morally right action is the one which produces the most pleasure, whereas rule utilitarianism states that the morally right action is the one that is in accordance with a moral rule whose general observance would create the most happiness. In terms of two-level utilitarianism, act utilitarianism can be likened to the 'critical' level of moral thinking, and rule utilitarianism to the 'intuitive' level.[4]