Industrial Economics, Incorporated

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Health Measurement & Valuation

IEc is a national leader in quantifying and monetizing the benefits of laws, policies, and programs influencing health and safety. We specialize in valuing improvements in public health such as reductions in the number of cases of lung disease resulting from smoking cessation programs, or reduced incidence of kidney disease as the result of improved drinking water quality. IEc has developed and implemented methods to value a variety of fatal and nonfatal health outcomes, including acute and chronic illnesses and injuries.​

Although health-related amenities often are not purchased in conventional markets, their value can be central to public policy management decisions. IEc applies a wide array of valuation methods that draw on our skills in statistical analysis, microeconomics, and risk analysis. For instance, we estimate averted medical treatment and lost productivity costs associated with improved air quality. Likewise, we implement revealed preference (e.g., hedonic wage studies) or stated preference (e.g., contingent valuation) analyses using both primary research and methods built on existing literature. We enhance our capabilities through collaboration with prominent academic economists.

IEc’s client base for health valuation is diverse and includes the U.S. EPA, U.S. Customs and Border Protection, U.S. Coast Guard, Consumer Products Safety Commission, Department of Health and Human Services,  and Health Canada.

Specialty Areas

For more than 20 years, IEc has provided analytic support to government agencies charged with reducing the adverse impacts of tobacco use on public health. Our work in this area is shaped by detailed understanding of the massive public health burden attributable to smoking and other forms of tobacco consumption. It is also guided by an appreciation of the challenges our clients face in formulating policies that help current tobacco users quit and discourage young people from experimenting with potentially addictive tobacco products. These challenges are particularly acute in regulating the marketing of newly developed sources of nicotine, from vaping to nicotine pouches. These products offer cigarette users potentially less harmful alternatives to smoking and may help some people quit. At the same time, they may prove attractive to young people who would not otherwise become nicotine users, leading to health impacts that, at present, are poorly understood.

In the face of these challenges, IEc strives to help regulators gauge the potential costs and benefits of alternative approaches to tobacco control, as informed by a thorough understanding of tobacco market dynamics and the latest research on the health consequences of different forms of tobacco use. Our approach to these assessments includes development and application of rigorous methods to characterize the potential impacts of regulatory standards on the use of alternative products, as well as methods to quantify and value the health benefits of potential reductions in tobacco use. We also work closely with our clients to ensure that they understand the data and assumptions that provide the foundation for our analysis, as well as the sensitivity of our findings to underlying uncertainties.

Project Examples

Cigarette
Expert Elicitation on the Behavioral Impacts of a Nicotine Standard
U.S. Food and Drug Administration, Center for Tobacco Products
Peeling paint
Benefits of Reducing Lead Paint Exposure
Health Canada
Man with a walker
Regulatory Analysis Guidance for Health and Human Services (HHS)
U.S. Department of Health and Human Services
  • Applied EconomicsApplied Economics
  • Natural Resource Economics
  • Health Measurement & Valuation
  • Benefit-Cost Analysis
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