Multiscale Governance Cost-Benefit Analysis: A Network Theory Approach to Evaluating Policy Spillovers Across Jurisdictional Boundaries

Current CBA methods typically evaluate policies within single jurisdictions, ignoring interjurisdictional spillovers. This research introduces a novel approach using network theory and systems dynamics to model governments, agencies, and stakeholders as nodes in a complex network, with policy interventions creating ripple effects through institutional and economic connections. For example, flood management strategies would be evaluated not only for direct municipal impacts but also for upstream and downstream effects and coordination benefits. The methodology combines agent-based modeling with input-output analysis to trace policy impacts across multiple jurisdictional layers and develops novel network metrics to quantify spillovers and coordination benefits. This "multiscale CBA" framework provides decision-makers a more complete picture of interventions' true effects, valuable for complex challenges like climate change, pandemics, and infrastructure planning that cross jurisdictional boundaries.