Economic analysis now plays a central role in policy-making. Establishing the welfare impact of alternative inventions is often a key step in deciding what to do. Best practice now requires a cost-benefit analysis of proposals. The trend towards ‘evidence-based’ policy depends on the use of appropriate statistical and econometric techniques, benchmarking of international practice and the careful design of policy trials.
The challenge is to identify who wins and who loses under different policies and to quantify their respective benefits and costs. Even where little data is available for a full quantitative assessment, economics provides a framework for establishing the likely order of magnitude of costs and benefits.
DotEcon has significant expertise in undertaking cost-benefit analyses and regulatory impact assessments. We have used a full range of advanced quantitative techniques (including customised market research to support conjoint and hedonic analysis) as well as theoretical analysis and modelling in supporting our clients. Examples of our work include:
- assessment of the benefits of removing restrictions on the use of licence-exempt spectrum, without which WiFi hot-spots now common across the UK would not have been possible;
- assessment of the benefits of awarding scarce airport capacity efficiently;
- analysis of the role of free-to-air television in the move towards digital television, which has influenced broadcasting policy in the UK; and
- a major study for the European Commission on the potential benefits from secondary trading of radio spectrum.
Contact us for further information.