This paper discusses cost-effectiveness as it applies to education, focusing particularly on the delivery of online courses in open and distance learning. The general concept of cost-effectiveness is discussed, and issues concerning the costs and effectiveness associated with using online technology in distance education are then addressed. Finally, a pilot project on an online course at the Open University of Hong Kong (OUHK) is used as an illustrative example. The key features of the pilot project relating to costs and effectiveness are outlined, and ways to improve its cost-effectiveness in implementing its second stage are suggested. [Copyright of Open Learning is the property of Routledge. Full article may be available at the publisher's website: http://dx.doi.org/10.1080/026805100750036908]
