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Benefit-Cost Analysis and Crime Prevention

NCJ Number
181823
Author(s)
John Chisholm
Date Published
2000
Length
6 pages
Annotation
The Australian Institute of Criminology estimates the annual costs of crime in Australia were between $11 and $13 billion in 1996, clearly demonstrating that crime and crime prevention are costly.
Abstract
Cost-benefit analysis can be used to assess the effectiveness of crime prevention programs, although few such programs in Australia have employed this type of analysis. In using cost-benefit analysis, crime prevention can be construed as a time continuum, with early intervention at one extreme and incarceration at the other extreme. Between these extremes are an array of social and developmental programs for early childhood, juvenile, and adult offenders. Cost-benefit analysis can also be applied in the context of situational crime prevention and correctional interventions. To ensure accountability in crime prevention programs that use cost-benefit analysis to guide funding decisions, analysis results should be fully transparent. Cost-effective crime prevention means spending money on the most cost-effective programs, and government decisions should be guided by long-term social costs and benefits of alternative crime prevention programs.