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Last edited 14 Mar 2022
The SuDS Manual published by CIRIA in 2015 defines cost-effectiveness analysis (CEA) as: ‘A form of economic analysis that compares the relative cost to benefit, sometimes described as the change in outcome for a unit of investment.’ Where the term ‘cost-effective’ refers to: ‘Something that is value for money. In economic terms, the benefits received and/or services delivered are worth at least what is paid for them.’
Glossary of Capital Budgeting and Infrastructure Governance, published by the Organisation for Economic Co-operation and Development (OECD) in 2018, defines cost-effectiveness analysis as: ‘…a form of economic analysis that compares the relative costs and outcomes (effects) of two or more courses of action. Cost-effectiveness analysis is often used in the field of health services, where it may be inappropriate to monetize health effect. Common measures include “quality-adjusted life years”.'
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