Carbon emission values in cost benefit analyses
AbstractNew infrastructure projects may affect CO2 emissions and, thus, cost benefit analyses for these projects require a value to apply for CO2. This may be based on the marginal social cost of emissions or on the shadow price resulting from present and future policies. This paper argues that both approaches are necessary, but for cost benefit analysis of infrastructure projects the latter should be the primary tool. A series of complications arise when applying this principle in practice. These are discussed in the paper. Even if the complications make the implementation of a shadow price approach difficult, we argue that the approach still is preferable to a social cost approach.
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Bibliographic InfoArticle provided by Elsevier in its journal Transport Policy.
Volume (Year): 18 (2011)
Issue (Month): 6 (November)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description
Other versions of this item:
- Mandell, Svante, 2010. "Carbon Emission Values in Cost Benefit Analyses," Working Papers, Swedish National Road & Transport Research Institute (VTI) 2010:4, Swedish National Road & Transport Research Institute (VTI).
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
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