Cost-effectiveness Analysis

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Cost-effectiveness Analysis is the economic analysis of the costs and benefits of an impact evaluation project.

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  • Cost-effectiveness analysis should be included in project design to compare alternative projects.

Guidelines

What is Cost-effective Analysis (CEA)?

CEA summarizes the results of complex program as ratio of costs to effects. It measures the cost for a given level of effectiveness, for example the cost to increase skilled birth attendance by 50 percent or vice versa, for example the percentage gain in skilled birth attendance induced by spending $100. The analysis must accurately reflect the program based on costs and impacts actually observed. It is useful for comparing multiple interventions with common outcome(s) if the costs and benefits are computed using similar methodology for all programs.

Difference between Cost-effective Analysis and Cost-benefit Analysis

Use of Cost-effective Analysis in Impact Evaluations

Quantifying Impacts

Calculating Costs

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