Carbon emission values in cost benefit analyses

New 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, it is argued that the approach still is preferable to a social cost approach.

• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S0967070X11000862
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/29485010
• Supplemental Notes:
  • Abstract reprinted with permission from Elsevier.
• Authors:
  • Mandell, Svante
• Publication Date: 2011-11

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References;
• Pagination: pp 888-892
• Serial:
  • Transport Policy
  • Volume: 18
  • Issue Number: 6
  • Publisher: Elsevier
  • ISSN: 0967-070X
  • Serial URL: http://www.elsevier.com/locate/issn/096707X

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Carbon dioxide; Climate change; Economics; Environmental impacts; Externalities; Greenhouse gases; Indirect costs; Investments; Policy; Pollutants; Project management
• Subject Areas: Aviation; Economics; Environment; Highways; Policy; Public Transportation; I10: Economics and Administration; I15: Environment; I21: Planning of Transport Infrastructure;

Filing Info

• Accession Number: 01353018
• Record Type: Publication
• Files: TRIS, ATRI
• Created Date: Sep 30 2011 7:39AM