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CERE - the Center for Environmental and Resource Economics CERE Working Papers, CERE - the Center for Environmental and Resource Economics

No 2010:1:
A note on how to undertake a cost-benefit analysis in monetary and environmental units

Per-Olov Johansson () and Bengt Kriström ()

Abstract: In this note we discuss two alternative ways of undertaking a social cost-benefit analysis. One approach is the conventional one where benefits and costs are expressed in monetary units. The other approach uses an environmental asset as the payment vehicle. The properties of the two approaches are discussed and the measurement problems are stressed.

Keywords: Cost-benefit analysis; externalities; choice of numeraire; habitat equivalence analysis; resource equivalency methods; (follow links to similar papers)

JEL-Codes: D61; H43; Q51; Q57; (follow links to similar papers)

9 pages, April 6, 2010

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