What are some real-world examples of cost-effectiveness analysis?

What are some real-world examples of cost-effectiveness analysis?

Cost-effectiveness analysis (CEA) is used in various fields. For instance, in healthcare, it helps compare the costs and health outcomes of different treatments.

Can you give me a specific example in healthcare?

Sure! One example is the analysis of the cost-effectiveness of the HPV vaccine. Researchers compared the costs of vaccination programs to the potential savings from preventing cervical cancer.

What about examples outside of healthcare?

In environmental policy, CEA is used to evaluate the cost-effectiveness of different strategies for reducing carbon emissions, such as renewable energy investments versus fossil fuel regulations.

How do they determine what is cost-effective?

They typically calculate the cost per quality-adjusted life year (QALY) gained or the cost per unit of outcome achieved, comparing these metrics across different interventions.