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Synthesizing Environmental Externality Costs – A Statistical and Multi-Attribute Analysis Approach

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  • J.P. Huang
  • B.W. Ang
  • K.L. Poh

Abstract

Due to the high degree of uncertainty and complexity of environmental effects, estimates of environmental damage costs tend to vary significantly from one study to another. It is often difficult for the policy maker or analyst to choose reasonable estimates of environmental externality adders in policy analysis. In this paper, we propose an approach to synthesizing estimates of environmental externality adders given in different sources using the Finite Mixture Distribution statistical technique and the Analytic Hierarchy Process multi-attribute analysis method. We present the results of the marginal social costs of C0 2 obtained using the proposed approach and the possible applications of these results in environmental studies.

Suggested Citation

  • J.P. Huang & B.W. Ang & K.L. Poh, 1996. "Synthesizing Environmental Externality Costs – A Statistical and Multi-Attribute Analysis Approach," Energy & Environment, , vol. 7(3), pages 253-266, May.
    • Handle: RePEc:sae:engenv:v:7:y:1996:i:3:p:253-266
    DOI: 10.1177/0958305X9600700302
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    References listed on IDEAS

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    1. William R. Cline, 1992. "Economics of Global Warming, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 39, October.
    2. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    3. 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.
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    Cited by:

    1. Zhou, Peng & Poh, Kim Leng & Ang, Beng Wah, 2007. "A non-radial DEA approach to measuring environmental performance," European Journal of Operational Research, Elsevier, vol. 178(1), pages 1-9, April.
    2. J.P. Huang & B.W. Ang & K.L. Poh, 1997. "Synthesizing Values of Statistical Life for Energy-Environmental Policy Analysis," Energy & Environment, , vol. 8(3), pages 179-190, September.

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