Guidelines for conducting cost–benefit analysis of household energy and health interventions
Indoor air pollution from solid fuel use is responsible for more than 1.5 million deaths due to respiratory diseases annually. Effective solutions to reduce levels of indoor air pollution and to improve health do exist. Economic evaluation enables explicit and quantitative comparisons of the efficiency of different interventions using a simple-to-interpret summary efficiency measure – cost per impact achieved – as the common outcome measure. Cost–benefit analysis values all the outcomes of interventions in monetary terms. This gives a benefit–cost ratio, which indicates the monetary or welfare benefit per currency unit spent and provides a decision-making tool with a broad societal perspective.
These cost-benefit analysis guidelines introduce the framework for assessing the costs and benefits of household energy and health interventions. They outline the different steps in the process of analysis: choosing interventions, defining boundaries, estimating costs and impacts, carrying out sensitivity analysis and presenting the results and their implications.
This technical publication is intended for economists and professionals interested in conducting cost-benefit analysis of interventions to reduce indoor air pollution.