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What is CBA (cost-benefit analysis)?

 

“CBA is used for choosing between different options, by comparing the net benefits of each option, that is the total benefits minus the total costs. To simplify calculations, only the differences in costs and benefits need to be compared. Indeed in many cases one is comparing projects which provide identical services and therefore benefits; in such cases it is only necessary to compare the difference in the costs between the options compared.

 

Before carrying out a CBA, it must first be decided whether the analysis is to be economic, i.e. from the point of view of the country as a whole, or financial, i.e. from the point of view of the individual operator, company or organisation which makes the investment. The economic analysis tells one whether the project is worth supporting as a matter of public policy; the financial analysis whether the project is sufficiently profitable to interest the operator(s) concerned. According to which type of analysis one is conducting different approaches are needed in the valuation of costs and benefits. Often one must analyse the project from both viewpoints.” - FAO

Alternatives

  • Expanding power grid. Expensive in the short run and long run, but provides innumerable other benefits.

  • Buying ice. Quickly becomes expensive, provides few other benefits.

  • Other solar powered or direct drive fridges. Expensive, largely sold through commercial enterprises.

Cost-Benefit Measurements

Cost of Vaccine Clinics

  • set-up of the clinic

  • paying clinicians

  • arranging access to clinics

 

Disability-Adjusted Life-Years (DALY)

  • Measures disease burden by quantifying years of life lost due to ill-health, disability, or early death.

  • Compares life expectancy in different countries.

  • A way to measure the impact of psychiatric diseases.

  • = Years Lived with Disability (YLD) + Years of Life Lost (YLL)

  • Can be calculated depending on specific diseases (something we should do)

 

Quality-Adjusted Life-Years (QALY)

  • Often used in cost-utility analysis to calculate the ratio of cost to QALYs saved for a particular health care intervention (like vaccinations!)

    • This is then used to allocate healthcare resources, with an intervention with a lower cost to QALY saved (incremental cost effectiveness) ratio ("ICER") being preferred over an intervention with a higher ratio.” (Wikipedia)

  • A year of life lived in perfect health is worth 1 QALY (1 Year of Life × 1 Utility value = 1 QALY)

  • cost-effectiveness analysis is often used in health setting, when it is inappropriate to monetize health effects.

 

Food Storage

Stakeholders

  • Parts sellers -- Ideally find sellers in the countries where the fridges are to be implemented.

    • Some parts could be found through recycling -- Many developing countries rent land out for dumping purposes.

    • Find recycling/scavenging organizations --

  • Manufacturers of competitor solar fridges

  • Merchants who sell perishable goods (namely food)

    • Benefits those currently in the market.

    • Opens up possibility for new market goods, which in the long run could result in increased demand for labor, which in turn increases wage competition.

  • Consumers of perishable goods (namely food)

    • Potential to improve nutrition in the long run (can change demand towards more nutritious foods (produce, dairy), rather than predominantly grain-focused diets

    • Reduces hunger by preserving food for longer -- Makes better use of food surplus.

    • Health benefits -- Food preserved safely.

  • Global Health Organizations

    • Those that are trying to distribute vaccines, or support agriculture/vendors

    • GAVI; WHO; Gates Foundation; Heifer International

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