Estimating the potential economic benefits of applying overseas substance abuse prevention programs in Malta

Abstract

This study presents a detailed Cost-Benefit Analysis of introducing new substance abuse prevention initiatives in Malta. The proposed initiatives aim to extend the availability of schools beyond regular hours to provide safe environments for adolescents and reduce the intervals between data collection to support timely policy updates. Utilizing a mixed-method approach, the research combines primary data from contingent valuation surveys to estimate willingness-to-pay for benefit evaluation and secondary data from expert opinions, international studies, and local sources. The primary aim is to assess the cost-effectiveness of this initiative, focusing on adolescents and comparing scenarios with and without its implementation. The analysis includes four scenarios: a scenario for tobacco use reduction, alcohol use reduction, illicit drug use reduction, and a combined scenario of all three. Employing a cost-benefit approach and the Benefit Transfer Method, both direct and indirect benefits and costs are estimated. Key findings indicate significant economic viability, with a positive net present value and a benefit-cost ratio greater than 1. The combined scenario yields an NPV of €44.35 million and a BCR of 8.09, highlighting the substantial benefits of the prevention program relative to its costs. Sensitivity analysis highlights the robustness of these results, showing positive returns even under less favourable conditions. This study emphasizes the importance of continued and expanded substance use prevention efforts, recommending the integration of these initiatives into broader, multi-component prevention strategies to optimize their impact on public health and economic outcomes in Malta.