1In addition to the outcomes measured in the meta-analysis table, WSIPP measures benefits and costs estimated from other outcomes associated with those reported in the evaluation literature. For example, empirical research demonstrates that high school graduation leads to reduced crime. These associated measures provide a more complete picture of the detailed costs and benefits of the program.
2“Others” includes benefits to people other than taxpayers and participants. Depending on the program, it could include reductions in crime victimization, the economic benefits from a more educated workforce, and the benefits from employer-paid health insurance.
3“Indirect benefits” includes estimates of the net changes in the value of a statistical life and net changes in the deadweight costs of taxation.
Detailed Monetary Benefit Estimates Per Participant |
|
|
Taxpayers |
Participants |
Others2 |
Indirect3 |
Total
|
|
Cannabis use disorder |
Labor market earnings associated with cannabis abuse or dependence |
$204 |
$481 |
$0 |
$0 |
$686 |
Health care associated with cannabis abuse or dependence |
$15 |
$3 |
$16 |
$8 |
$42 |
|
Program cost |
Adjustment for deadweight cost of program |
$0 |
$0 |
$0 |
($147) |
($147) |
|
|
|
Totals |
|
$220 |
$484 |
$16 |
($140) |
$581 |
|
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Populations - Primary |
Crime |
All people All people with or without prior ciminal justice system involvement |
Illicit drugs |
General population All people |
Cannabis |
Treatment population People meeting the diagnostic criteria for cannabis use disorder |
Opioids |
General population All people |
Earnings |
General population All people |
For more information on populations see the 2023
Technical Documentation
Detailed Annual Cost Estimates Per Participant |
Program costs |
$240 |
2012 |
Present value of net program costs (in 2022 dollars) |
($295) |
Comparison costs |
$0 |
2012 |
Cost range (+ or -) |
40% |
Contingency management is typically provided for less than a year. We calculated the weighted average of the variable per-participant treatment and comparison group costs across studies estimating the cost-effectiveness of an incentive program with an average cost of less than $500 in 2012 (Sindelar, Olmstead, & Peirce, 2007; Sindelar, Elbel, & Petry, 2006; Hartz et al., 1999). Costs of administering the incentive program include staff costs to inventory, shop for, and restock prizes; material cost of items; counseling session costs; and toxicology screens. All staff costs include salary, benefits, and overhead. All costs are calculated from the clinic perspective. Note that because treatment group participants have higher retention rates than the control group, costs also reflect the increased number of counseling sessions attended and urinalysis tests performed for the treated group.
Hartz, D.T., Meek, P., Piotrowski, N.A., Tusel, D. J., Henke, C.J., Delucchi, K., Sees, K., Hall, S.M. (1999). A cost-effectiveness and cost-benefit analysis of contingency contracting-enhanced methadone detoxification treatment. The American Journal of Drug and Alcohol Abuse, 25(2), 207-218. Sindelar, J., Elbel, B., & Petry, N.M. (2007). What do we get for our money? Cost-effectiveness of adding contingency management. Addiction, 102(2), 309-316. Sindelar, J.L., Olmstead, T.A., & Peirce, J.M. (2007). Cost-effectiveness of prize-based contingency management in methadone maintenance treatment programs. Addiction, 102(9), 1463-1471.
The figures shown are estimates of the costs to implement programs in Washington. The comparison group costs reflect either no treatment or treatment as usual, depending on how effect sizes were calculated in the meta-analysis. The cost range reported above reflects potential variation or uncertainty in the cost estimate; more detail can be found in our 2023 Technical Documentation.
Benefits Minus Costs |
Benefits by Perspective |
Taxpayer Benefits by Source of Value |
Benefits Minus Costs Over Time (Cumulative Discounted Dollars) |
The graph above illustrates the estimated cumulative net benefits per-participant for the first fifty years beyond the initial investment in the program. We present these cash flows in discounted dollars. If the dollars are negative (bars below $0 line), the cumulative benefits do not outweigh the cost of the program up to that point in time. The program breaks even when the dollars reach $0. At this point, the total benefits to participants, taxpayers, and others, are equal to the cost of the program. If the dollars are above $0, the benefits of the program exceed the initial investment. |
Benefits by Perspective Over Time (Cumulative Discounted Dollars) |
The graph above illustrates the breakdown of the estimated cumulative benefits (not including program costs) per-participant for the first fifty years beyond the initial investment in the program. These cash flows provide a breakdown of the classification of dollars over time into four perspectives: taxpayer, participant, others, and indirect. “Taxpayers” includes expected savings to government and expected increases in tax revenue. “Participants” includes expected increases in earnings and expenditures for items such as health care and college tuition. “Others” includes benefits to people other than taxpayers and participants. Depending on the program, it could include reductions in crime victimization, the economic benefits from a more educated workforce, and the benefits from employer-paid health insurance. “Indirect benefits” includes estimates of the changes in the value of a statistical life and changes in the deadweight costs of taxation. If a section of the bar is below the $0 line, the program is creating a negative benefit, meaning a loss of value from that perspective. |
Taxpayer Benefits by Source of Value Over Time (Cumulative Discounted Dollars) |
Citations Used in the Meta-Analysis
Carroll, K.M., Nich, C., Lapaglia, D.M., Peters, E.N., Easton, C.J., & Petry, N.M. (2012). Combining cognitive behavioral therapy and contingency management to enhance their effects in treating cannabis dependence: less can be more, more or less. Addiction, 107(9), 1650-1659.
Litt, M.D., Kadden, R.M., Kabela-Cormier, E., & Petry, N.M. (2008). Coping skills training and contingency management treatments for marijuana dependence: exploring mechanisms of behavior change. Addiction, 103(4), 638-648.