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Monetization of Environmental Externalities (Emissions) from Bioenergy

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  • Isabelle BROSE

    () (Business Administration Department University of Namur)

Abstract

Bioenergy from agriculture is today in the heart of sustainable development, integrating its key components: environment and climate change, energy economics and energy supply, agriculture, rural and social development. Each bioenergy production route presents externalities that must be assessed in order to compare one bioenergy route to another (bio)energy route. The lack of primary and reliable data on externalities is, nevertheless, an important nontechnological barrier to the implementation of the best (bio)energy routes. In this article, we want to monetize one environmental externality from bioenergy: emissions (GHG: CO2, CH4, N2O, O3; CO, NOx, SO2, metal, and PM). We have to monetize emissions on the basis of their effects on health, global warming, and soil and water quality. Emissions will be quantified through Life Cycle Analysis (LCA) and ECOINVENT database. Impacts on health will be monetized on the basis of mortality (number of life expectancy years lost multiplied by Value Of Life Year (VOLY)) and morbidity (number of ill persons multiplied by Cost Of Illness (COI)). Impacts on global warming will be monetized by Benefits Transfers from the Stern Review and its critics. Finally, impacts on soil and water quality will be monetized by Averting Behaviour or Defensive Expenses methods. Monetization results will be gathered, weighted, and incorporated in states and firms’ decisionmaking tools. They would enhance capacity of policy makers and managers to chose the best (bio)energy routes.

Suggested Citation

  • Isabelle BROSE, 2008. "Monetization of Environmental Externalities (Emissions) from Bioenergy," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 13-18.
  • Handle: RePEc:ddj:fseeai:y:2008:i:1:p:13-18
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    References listed on IDEAS

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    1. André de Palma & Néjia Zaouali, 2007. "Monétarisation des externalités de transport : un état de l'art," THEMA Working Papers 2007-08, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    2. Joe O'Doherty & Karen Mayor & Richard S.J. Tol, 2007. "Irish Sustainable Development Model (ISus): Literature Review, Data Availability and Model Design," Papers WP186, Economic and Social Research Institute (ESRI).
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