Problems and Challenges in Application Cost-Benefit Analysis– Case Study of Resen Municipality

In the framework of public sector, government has an obligation to take care of the rational use of the funds intended for investment. In order to determine the degree of rationality of individual programs or projects, or to make a choice between potential programs and projects, government should apply a methodology for their mutual comparison. Cost-benefit analysis is such a methodological approach for social optimization of policies, programs and projects. The project for improvement of energy efficiency and environmental protection in the case of secondary school in Resen municipality, Republic of Macedonia, is a relevant example for applying this kind of tools for economic analysis