The UK Government, and its economic regulators, extensively use economic
appraisal. The Treasury Green Book (HMT, 2004, 2007) provides the guidance
on how to do this, and requires Government action be based on an assessment
of how any proposed policy, programme or project can best promote the public
interest. It specifically sets out guidance to assess whether the benefits of intervention
are expected to exceed the costs. This is assessed through cost-benefit
analysis (CBA), whereby all relevant costs and benefits to government and so-