How to use MBx Tool?
Why do it?
And what is it?
MBx tool is designed to undertake Social-Cost Benefit Analysis (S-CBA). S-CBA is a systematic method for weighing pros and cons of across the society for an initiative (policy or project) decisions. MBx informs judgement about whether a proposal is worth it- do benefits outweigh the costs?
You identify, quantify and value the positive and negative impacts for the benficiaries affected. MBx tool helps you compare impacts and value them in € terms. You monetise key impacts where possible. S-CBA is a core element of value for money assessment to inform decisions.
What do I need
to think about first?
- InterventionDescribe who or what the initiative intervenes with as a part of impact pathway. The unit can anythings such as houses, people, families etc. Keep it simple and flexible for analysing different impacts.
- ImpactsThink about your proposal and what impacts will it achieve and for whom as well as what the decision maker wants to achieve. Think about intended and unintended impacts. Go beyond the fiscal costs and benefits for the government. The list of impacts in MBx impact database can help you think about specific impacts that can be valued in moneary terms for estimating the size of impact on the identified beneficiaries.
What assumptions or
other impacts are there?
- 1 Keep a note of assumptions you have made in selecting the impacts, working out the costs and inputs. Add them to the Output results page.
- 2 Think about the monetised and unmonetised impacts that you may have identified and add them to the commentary in the Output results page.
What numbers should
I have in front of me?
To use the MBx tool, organisations need to quantify impacts and estimate the success rates based on best available data and evidence for each impact in the initiative for project or policy.
- Primary inputsYour impact pathway describes the beneficiaries that the initiative intervenes with and associated unit of analysis e.g. per person. What are the estimated units per year (e.g. number of people) for the next 50 years who are affected by the initiative in relation to impacts. To compare impacts across time, MBx calculates present values. The tool applies a defalut discount rate of 2%.
- Cost inputsEstimate the operating expenditure (excluding depreciation and capital surcharge) as well as the capital expenditure in current year €.
- Impact inputsThere can be non-fiscal impacts or fiscal costs. You can select impact values from the MBx database or add new ones. Think about the time lag between initiative intervention and each impact that might occur and how long that impact may last? How big is the estimated impact now and after the intervention per beneficiary. Simplest to use 0= impact does not happen and 1= impact happens.
