Case Study: Cost-Benefit Analysis

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Team C feels that Cost-benefit analysis would be appropriate to the Bureau of Land Management’s (BLM) situation. According to our textbook, in the modern society importance of estimating and evaluating costs and compare them with benefits increases. Today public administrators must do more than just to enjoy the benefits of protecting wild horses as a symbol of the independence of the American West – they must also weigh the costs and other repercussions of such action. Then the public administrators have to make a decision on how to improve the program performance. As a tool to measure costs and benefits of BLM’s Wild Horse and Burro Program Team C decided to use the following decision-making analytical technique:

In our opinion, BLM’s
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Within their movement “toward long-term stability," it is apparent that the Bureau’s main issue is the over population of wild horses because “the number of wild horses and burros removed from the range is far greater than the number adopted or sold” (Starling, P. 291). Another issue with this scenario is “the average cost per animal has increased” causing the BML to “anticipate that holding costs will account for about seventy-four percent of the programs direct cost” (Starling, P. 291). After analyzing the situation the Bureau of Land Management has, it is possible for Team C to provide several educated suggestions on how to improve its handling of the wild horses. The first suggestion for the BML in order to lower the horses population and avoiding “the large-scale slaughter of thousands of healthy horses," Team C would suggest separating the horses based on sex. A positive view by segregating the horses would limit the encounters and reproduction between male and female horses. Even though the horses are segregated, this would provide a decreased rate of reproduction and allow “nature to take its course” (Starling, P. 292). A negative view about this suggestion is it may cost more to build or gate off sections for male and female wild horses to live in. Overall, the population of wild horses would be able to be controlled …show more content…
A cost-benefit analysis would be beneficial for the BML because it would allow them to readjust their revenue and expenses. As the case study states, “BLM has primarily sought increased funding to open additional holding facilities. However, funding is not likely to increase in the future," (Starling, p. #) this should be a key indicator for the BLM to reevaluate their current spending for future operations. Another reason why the cost-benefit analysis would be beneficial to the BML is if they were to go with our team’s suggestion of segregating by sex. The BLM could create a long term analysis of how much it would cost to segregate, when the segregation would be in effect, number of total wild horses by year, and the average cost per day to house the wild horses. The other method of modeling the BLM could utilize is the multi-objective technique in order to reach their long-term goals. In order to do this, the BLM would ultimately have to answer the question, “How many wild horses create an overpopulation or possible endangerment to extinction?” (Starling, p. #). After finding these maximum and minimum values, the BLM then could find the number of horses that they could sustain and care for with their current budget. Finally, when the BLM is able to understand their budget and the capacity of wild horses

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