Cost–benefit analysis of the quarantine policy during the outbreak of the Covid-19 virus in Iran

Morteza Tahamipour Zarandi () and Kimia Haghbandeh ()
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Morteza Tahamipour Zarandi: Shahid Beheshti University
Kimia Haghbandeh: Shahid Beheshti University

Health Economics Review, 2025, vol. 15, issue 1, 1-12

Abstract: Abstract Background The outbreak of COVID-19 posed significant health and economic challenges worldwide, prompting governments to implement various containment measures, including quarantine policies. This study examines the cost–benefit analysis of Iran’s quarantine policy during the pandemic, evaluating its economic impact, public health outcomes, and overall effectiveness. The research explores the direct and indirect costs of quarantine, including reduced economic activity, government expenditures, and social consequences, while assessing the benefits in terms of lives saved, healthcare system relief, and long-term economic stability. Findings suggest that while quarantine measures imposed substantial financial burdens, they played a crucial role in controlling the virus’s spread and preventing a greater economic and human toll. The study highlights the necessity of balancing public health interventions with economic sustainability, offering insights for future pandemic response strategies. Methods This study has used the cost–benefit analysis method. In the financial evaluation, benefits such as the reduction of fuel costs, gratuitous payments, and the benefit of credits paid to employees have been compared to expenses such as the average cost of corona treatment in the hospital and at home for the population of employees who have contracted the disease. Also, in the economic evaluation, the benefits of reducing electricity costs and food for employees, the willingness of people to pay the government for protective measures, and reducing overtime payments to employees compared to costs such as food for hospitalized employees, paying subsidies to employees and reducing GDP Has been studied. Results Application of quarantine is optimal from the view of government employees (financial point of view) with a benefit–cost ratio of 1.98, and the government's point of view (economic point of view) is cost-effective with a benefit–cost ratio of 2.68. Conclusions These results indicate that applying quarantine for employees benefits both the people and the government. Thus, the results of this study can be a guide for policymakers in managing similar disasters or the spread of other strains of the Coronavirus in the future.

Keywords: Coronavirus; Benefit–Cost analysis; Net present value; Quarantine; Government; Iran (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1186/s13561-025-00626-7

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