Economic analysis for policy appraisal is generally interested in answering two questions, "is a given policy objective worth achieving" and if so, "has the policy objective been achieved in the most cost-effective way?" While the first question is addressed in a cost-benefit analysis (CBA), the second question can be answered with the help of a cost-effective analysis (CEA). The authors of this book chapter focus on ex-post CEA and reveal problems, challenges and opportunities of CEA at the European level.

They provide an overview of legal requirements for ex post CEA in European environmental policy, and summarize the guidance documents and manual for carrying out ex post CEAs. Furthermore, they present selected case studies of applied ex post CEA for environmental policy measures, and provide an interpretation of the results. Finally, they conclude and suggest a number of recommendations.

This publication is a result of the project Cost-Effectiveness of Environmental Policies, which Ecologic conducted in 2005 on behalf of the EEA, together with IVM and eftec.