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cost effectiveness analysis


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Synonyms: análise custo-eficácia, cost-effectiveness analysis, CEA, ACE, prévisions de rentabilité, analyse coût/efficacité, análisis de relación de efectividad y costos

An assessment that compares the costs associated with alternative ways of achieving a specified objective. The aim is to identify the option that can deliver the objective at least cost. Unlike cost-benefit analysis, the level of benefit is treated as an external given, and the objective of the analysis is to minimise the costs associated with the achievement of the specified objective. This objective or level of public good is identified perhaps as a result of negotiation or consultation with key stakeholder groups. CEA can require that a form of CBA be carried out when the costs of achieving the objective are deemed too high. CEA is generally more applicable for individual project decisions that are applying decision rules or procedures that have already been determined in policy, strategic or programme decisions. The costs may include those for which the market does not supply a satisfactory measure of value. (UKCIP, 2003) A special case of cost-benefit analysis in which all the costs of a portfolio of projects are assessed in relation to a fixed policy goal. The policy goal in this case represents the benefits of the projects and all the other impacts are measured as costs or as negative costs (co-benefits). The policy goal can be, for example, a specified goal of emissions reductions of greenhouse gases. (IPCC, 2014)

(UKCIP, 2003); IPCC, 2014

Broader terms:
appraisal tools

Linked data frontend for cost effectiveness analysis.