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Cost Effectiveness Analysis: Methodology for the Food Chain Area

Abstract: 
This report provides a methodological guidance on cost-effectiveness analysis in the view of future evaluations of the EU interventions currently funded under the Common Financial Framework of the food chain area (CFF, Regulation (EU) No 652/2014). The report was commissioned by DG SANTE. Under the CFF, the EU is either funding or co-funding eligible costs faced by Member States when implementing phytosanitary and veterinary programmes, official control activities, and veterinary and phytosanitary emergency measures. These interventions aim at contributing to a high level of health for humans, animals and plants along the food chain, by preventing and eradicating diseases and pests and by ensuring a high level of protection for consumers and the environment, while enhancing the competitiveness of the Union food and feed industry. This report presents a methodology on how to address relevant policy questions such as: “Should more funding be awarded to prevention measures or to control measures to reduce the risk of outbreaks of classical swine fever in pigs?” or “is the introduction of new e-learning tools for official staff more effective in increasing the quality of the official controls compared to workshops?” This report provides evaluation methods to answer this type of questions and illustrates the methodology introduced for specific CFF related policy questions. These methods are based on disaggregated data and regression techniques. Economic evaluation is a systematic analysis tool to assess and quantify whether the interventions produce the expected effects, and to help draw conclusions on the cost-effectiveness of the different EU funded programmes. Thus, economic evaluation is a funding allocation tool that allows decision makers with a budget constraint to make informed choices on which interventions to allocate funding to. When performing economic evaluation, three main challenges need to be addressed; (i) how to measure the costs, (ii) how to quantify the effects, and (iii) how to identify the causal impact of the intervention under evaluation.