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Incorporating GHG Emission Costs in the Economic Appraisal of Projects Supported by State Development Agencies

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  • Richard S. J. Tol

    (Economic and Social Research Institute (ESRI))

  • Seán Lyons

    (Economic and Social Research Institute (ESRI))

Abstract

This paper sets out a methodology for updating an economic appraisal model to ensure that it takes appropriate account of costs arising from greenhouse gas emissions. While the analysis is based on the appraisal model used in Ireland, it should be broadly applicable to circumstances in any EU Member State; indeed, many features will be relevant in any jurisdiction subject to a carbon tax or participating in a carbon permit trading system.

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File URL: http://www.esri.ie/UserFiles/publications/20080716090749/WP247.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP247.

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Length: 36 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:esr:wpaper:wp247

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References

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  1. Samuel Fankhauser, 1994. "The Social Costs of Greenhouse Gas Emissions: An Expected Value Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 157-184.
  2. Kandlikar, Milind, 1995. "The relative role of trace gas emissions in greenhouse abatement policies," Energy Policy, Elsevier, vol. 23(10), pages 879-883, October.
  3. Patrick Criqui, Peter Russ and Daniel Deybe, 2006. "Impacts of Multi-gas Strategies for Greenhouse Gas Emission Abatement: Insights from a Partial Equilibrium Model," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 251-274.
  4. A. Ellerman & Barbara Buchner, 2008. "Over-Allocation or Abatement? A Preliminary Analysis of the EU ETS Based on the 2005–06 Emissions Data," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(2), pages 267-287, October.
  5. Honohan, Patrick, 1998. "Key issues of Cost-Benefit Methodology for Irish Industrial Policy," Research Series, Economic and Social Research Institute (ESRI), number GRS172, July.
  6. William D. Nordhaus, 2006. "The "Stern Review" on the Economics of Climate Change," NBER Working Papers 12741, National Bureau of Economic Research, Inc.
  7. Richard Schmalensee, 1993. "Comparing Greenhouse Gases for Policy Purposes," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 245-256.
  8. David Pearce, 2003. "The Social Cost of Carbon and its Policy Implications," Oxford Review of Economic Policy, Oxford University Press, vol. 19(3), pages 362-384.
  9. Richard S. J. Tol & Gary W. Yohe, 2006. "A Review of the Stern Review," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 7(4), pages 233-250, October.
  10. John FitzGerald & Jonathan Hore & Ide Kearney, 2002. "A Model for Forecasting Energy Demand and Greenhouse Gas Emissions in Ireland," Papers WP146, Economic and Social Research Institute (ESRI).
  11. Tol, Richard S. J., 2005. "The marginal damage costs of carbon dioxide emissions: an assessment of the uncertainties," Energy Policy, Elsevier, vol. 33(16), pages 2064-2074, November.
  12. Richard S.J. Tol, 2006. "Multi-Gas Emission Reduction for Climate Change Policy: An Application of Fund," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 235-250.
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Cited by:
  1. Malte Grossmann & Ottfried Dietrich, 2012. "Integrated Economic-Hydrologic Assessment of Water Management Options for Regulated Wetlands Under Conditions of Climate Change: A Case Study from the Spreewald (Germany)," Water Resources Management, Springer, vol. 26(7), pages 2081-2108, May.

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