An evaluation of costs and benefits of the navy's drug prevention policies

Abstract

This thesis evaluates the costs and benefits of the Navy's drug prevention policies. Benefits stem from both deterrence and detection effects of the policies. By using data from the National Household Survey on Drug Abuse, and Department of Defense Survey of Health Related Behavior Among Military Personnel, the existence and magnitude of the deterrence effect is estimated. The gross benefits of the zero tolerance policy are calculated based on the costs avoided by deterring and detecting users. These benefits are compared to the total costs of the drug prevention program, including replacement costs of discharged personnel, and administrative costs. Sensitivity analysis suggests that, under reasonable assumptions about the key parameters, the program does not generate positive net benefits. It is recommended that an analysis of the cost-effectiveness of a rehabilitation program for positive drug testers be conducted.