The objective of this study is to provide a guideline for preparing Cost-Benefit Analysis (CBA) for regulatory environmental policy and investment projects. We first review the literature and several countries’CBA guidelines. Then we propose a CBA guideline with six major steps. These six steps are: (1) Defining Scope; (2) Identifying Cost and Benefit; (3) Evaluating Cost and Benefit; (4) Discounting Costs and Benefits; (5) Conducting Sensitivity Analysis and Weighted Cost-Benefit Analysis; (6) Presenting Results and Analysis. The Guideline for Preparing Cost-Benefit Analysis (CBA) for Regulatory Environmental Policy and Investment Projects details the theory and operating procedures of CBA. Cost-Benefit Analysis (CBA) model for regulatory environmental policy and investment projects are built-up based on “impact pathway analysis” method. And it includes four environmental issues, air, water, waste and Greenhouse Gas. And then we established air pollutant assessment model by EXCEL sheet. We also evaluate the feasibility of using Life-Quality Index (LQI) in CBA. We find that LQI is not applicable to estimate the benefit and cost of a regulatory environmental policy or an investment project.

Cost-Benefit Analysis;Evaluation Criteria;Life-Quality Index (LQI)