Cost-Effectiveness Analysis Guidance for Impact Evaluations

According to USAID's Automated Directives System (ADS), "all impact evaluations must include a cost analysis of the intervention or interventions being studied." While an impact evaluation assesses the outcomes and effectiveness of a program or intervention, a cost-effectiveness analysis (CEA) provides a complementary perspective by evaluating the efficiency of resource utilization. By examining the relationship between costs and outcomes, a CEA helps decision-makers prioritize interventions that deliver the greatest impact relative to their costs.

This Guidance Document, from the Humanitarian Assistance Evidence Cycle, outlines the analytical approach, data requirements, and other frequently asked questions around how to conduct a cost-effectiveness analysis for an impact evaluation.