This article reviews the use of several valuation methods as they relate to drug abuse and places them within the context of U.S. policy. First, cost-of-illness (COI) studies are reviewed and their limitations discussed. Second, three additional economic methods of valuing drug abuse are reviewed, including cost—effectiveness analysis (CEA), benefit—cost analysis (BCA) and willingness-to-pay (WTP). As the demand for cost-effective and evidence-based practices and policies grows, the importance of economic research into drug abuse treatment is increasing. However, societal perceptions of drug abuse and their effects on current resource allocation must also be considered when designing and implementing new strategies. Findings based on rigorous and innovative methodologies have the potential to positively impact the development and delivery of new cost-effective and beneficial services, thereby providing a more solid foundation for policy makers.
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