The research, from Dublin’s Health Information and Quality Authority (Hiqa), is the first official analysis of its kind in Europe.
The report concluded that an increase in people using e-cigarettes would lead to more people successfully quitting smoking.
However, the researchers noted there is still little evidence on the long-term effects from regular vaping.
Almost a third of Irish smokers who wish to quit smoking use e-cigarettes as an aid and Ireland is the only country in the EU to include e-cigarettes in a state assessment of how best to help people give up the habit.
While the report found e-cigarettes use is linked to people quitting smoking, it stressed that the combined use of the nicotine addiction medication varenicline, alongside nicotine gum, patches, inhalers or sprays, is a more effective way of getting people to quit.
Dr Mairin Ryan, Hiqa’s director of health technology assessment, told Press Association a “high level of uncertainty” remains around both the clinical and cost-effectiveness of e-cigarettes.
But she added: “Hiqa’s analysis shows that increased uptake of e-cigarettes as an aid to quitting would increase the number of people who successfully quit compared with the existing situation in Ireland and would be cost-effective, provided that the currently available evidence on their effectiveness is confirmed by further studies.”
The 700-page report found:
:: Varenicline was the most effective single medication for quitting smoking - more than two and a half times as effective as no drugs.
:: Varenicline alongside nicotine replacement therapy was more than three and a half times as effective as no medication.
:: E-cigarettes were twice as effective as no therapy (but this is based on only two trials with a relatively small number of participants).
It also suggested wider use of e-cigarettes could help the economy.
Ireland currently spends more than 40 million euros (£34 million) every year on helping people quit smoking. But the research found increasing e-cigarettes use could cut the bill by 2.6 million euros (£2.2 million) every year.
The report follows ongoing divided opinion on e-cigarettes from both scientists and health officials.
This appeared to contradict information previously released by Public Health England, which suggested that e-cigarettes are roughly 95% less harmful than tobacco.
Last year, research published in the British Medical Journal suggested the use of E-cigarettes can successfully help people quit smoking, therefore improving public health.