Economic assessment of food safety standards: Costs and benefits of alternative approaches

This article provides an overview of economic methods to measure costs and benefits related to food safety issues. After an introduction on general economic principles, including the distinction between social and private costs and benefits, the article highlights the various methods for calculation of costs and benefits, including “willingness to pay”, amongst others. Particular attention is paid to the “quality-adjusted life years” (QALY) method for quantitatively expressing health impacts. The practice of Regulatory Impact Assessments as carried out by the UK authorities is explored in more detail as an example of cost–benefit analysis of regulatory measures. The applicability of the approaches to the various stages of the SAFE FOODS model is highlighted.