Consistent Prices in Cost-Benefit Analyses (CBA): Update of Correction Factor for Indirect Taxes and Subsidies

When preparing a cost-benefit analysis (CBA) and other economic analyses, it is crucial to calculate with consistent prices: prices that can be compared with each other. For example, if costs are expressed in euros and benefits in Danish kroner, misunderstandings quickly arise: one euro is not worth the same as one Danish krone. The same difference applies to prices in ‘prices excluding product-related taxes and subsidies’ versus prices in ‘market or consumer prices’. In practice, there is a need for flexibility to calculate in both ‘prices excluding product-related taxes and subsidies’ and in ‘market prices’.