Exec. Ed. Online: Benefit-Cost Analysis: Valuing Life and Health

Benefit-cost analysis is a well-established and widely used approach for systematically assessing the impacts of environmental, health, and safety policies and informing decisions. It is a required component of the policy development process followed by many government agencies and organizations around the world.

During the COVID-19 epidemic, benefit-cost analysis has received unprecedented attention. It has played an important role in highlighting key trade-offs and informing decisions at a time when resources are very constrained and many other problems need to be addressed. However, this attention has highlighted confusion about the overall analytic framework and its advantages and limitations. The approaches used to value mortality risk reductions, commonly referred to as the value per statistical life (VSL), are also widely misinterpreted. Understanding the appropriate use of benefit-cost analysis and its implications is essential to promote evidence-based decisions in the face of numerous crucial policy challenges.

In this online program, Lisa A. Robinson, a leading Harvard expert on benefit-cost analysis, will aid you in understanding the analytic framework and its application globally. You will learn about methods for valuing changes in health and longevity and the estimates recommended for use in high-, middle-, and low-income settings. She will be accompanied by experts who will illustrate the application of these methods in several policy areas. Through interactive presentations, case studies, extensive discussion, and optional office hours, you will develop a deeper understanding of these approaches and their application.

You will leave this program understanding the advantages and limitations of benefit-cost analysis, as well as improving your ability to evaluate, interpret, and use the results.

Understanding Policy Trade-Offs: Are the Benefits Worth the Costs?

Benefit-cost analysis estimates the positive and negative impacts of a policy, clarifying the trade-offs implicit in the policy decision. As illustrated by the COVID-19 pandemic, the core challenge involves assessing the extent to which saving lives should take precedence over incurring economic damages and other costs.

Benefit-cost analysis, which is also known as cost-benefit analysis or return on investment analysis, is used in many other contexts to evaluate environmental, health, and safety policies. For example, it plays a major role in developing air pollution policies, motor vehicle safety regulations, smoking restrictions, and food safety requirements. In each case, benefit-cost analysis addresses the central question: are the benefits provided worth the costs incurred?