Cost-Benefit Studies

Lee, S., Aos, S., Drake, E., Pennucci, A., Miller, M. & Anderson, L. (2013). Return on investment: Evidence-based options to improve statewide outcomes. October 2013 (Printed on 3-20-14). Olympia: Washington State Institute for Public Policy.

According to a recent report on the economic benefit of evidence-based prevention programs, the Botvin LifeSkills Training (LST) program produced a $50 benefit for every $1 invested in terms of reduced corrections costs, welfare and social services burden, drug and mental health treatment; and increased employment and tax revenue. LST had the highest return on investment of all substance abuse prevention curricula studied. The analysis of the return on investment of LST and other evidence-based prevention programs is part of a series of reports prepared by researchers at the Washington State Institute for Public Policy. Together, these reports consistently show that effective prevention programs not only work but can produce dramatic savings.

Jones, D., Bumbarger, B., Greenberg, M., Greenwood, P., & Kyler, S. (2008). The economic return on PCCD’s research-based programs: A cost-benefit assessment of delinquency prevention in Pennsylvania. University Park: Pennsylvania State University.

This report considers the cost-effectiveness potential for seven research-based programs funded by the Pennsylvania Commission on Crime and Delinquency (PCCD). These programs are highlighted because they represent the bulk of the PCCD’s investment in prevention programming and because there are existing longitudinal data on program outcomes from which cost-benefit estimates can be derived. In addition to the positive outcomes related to the prevention and reduction of juvenile delinquency, significant fiscal cost savings may also be realized through the use of research-based prevention programs. The report shows that Pennsylvania will benefit a potential $16 million return on investment for its implementation the LifeSkills Training (LST) program. The low cost and wide reach of the LST program yields a return on investment of more than $25 for each dollar invested. Of the seven research-based programs funded by the PCCD, the LST program showed the highest per dollar return on investment.

Miller, T. and Hendrie, D. (2008). Substance Abuse Prevention Dollars and Cents: A Cost-Benefit Analysis. DHHS Pub. No. (SMA) 07-4298. Rockville, MD: Center for Substance Abuse Prevention, Substance Abuse and Mental Health Services Administration.

The authors reviewed prevention programs and policies, and conducted an analysis of the costs and benefits of implementing effective prevention programs nationwide. The study concluded that, if implemented nationwide, effective prevention programs could save an estimated $18 per $1 invested. With respect to LST specifically, the cost-benefit analysis indicated that LST could save even more–$21 for every $1 invested. The authors conclude that the cost of substance abuse could be offset by a nationwide implementation of effective programs and policies. The authors recommend that model programs include data on cost-benefit ratios to help guide prevention policy-makers and program planners in selecting programs suitable for their community.

Aos, S., Lieb, R., Mayfield, J., Miller, M., Pennucci, A. (2004). Benefits and costs of prevention and early intervention programs for youth. Olympia: Washington State Institute for Public Policy.

Does prevention pay? Can an ounce of prevention avoid (at least) an ounce of cure? More specifically for public policy purposes, is there credible scientific evidence that for each dollar a legislature spends on prevention or early intervention programs for youth, more than a dollar worth of benefits will be generated? If so, what are the policy options that offer taxpayers the best return on their dollar?  This report presents the findings of economic analysis of the costs and benefits of prevention and early intervention programs for youth. It also provides an overview of how the analyses were conducted. Among these findings, the results indicated that the LifeSkills Training (LST) program yields a return on investment of more than $25 for each dollar invested.