Cost-effectiveness analyses of chemical risk control policies in Japan

Results of cost-effectiveness analyses (CEA) for chemical risk control policies are presented. Advantages and disadvantages of CEA and cost-benefit analysis (CBA) are discussed. It is made clear that CEA is not an incomplete form of instrument for policy appraisal compared with CBA, but has its own value for chemical risk control policies. Firstly, cost-effectiveness ratios are actually too high to make CBA relevant as an instrument of policy appraisal. Secondly, deep-rooted uncertainties in policy appraisal make relative comparisons more attractive than an absolute value approach such as CBA. Thirdly, the index of effectiveness is not restricted to individuals’ preferences, and CEA is not restricted to the criterion of efficiency.