S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Swedish National Road & Transport Research Institute (VTI) Working Papers, Swedish National Road & Transport Research Institute (VTI)

No 2010:4:
Carbon Emission Values in Cost Benefit Analyses

Svante Mandell ()

Abstract: New infrastructure projects may affect CO2 emissions and, thus, cost benefit analyses for these projects require a value to apply for CO2. The value may be based on the marginal social cost associated with emissions or on the shadow price resulting from present and future policies geared towards CO2 emissions. In the present paper it is argued that the social cost approach should be seen as preceding the shadow price approach. Both are thus necessary, but for cost benefit analysis of infrastructure projects we argue for the shadow price approach as the primary tool. There is a series of complications involved when applying this principle in practice. Several of these are discussed in the paper, including non-marginal projects that affect permit prices, non-transparent permit markets, different instruments capturing different aspects of a CO2-value, multiple policies present simultaneously etc.

Keywords: Climate change; policy; cost-benefit analysis; carbon value; (follow links to similar papers)

JEL-Codes: H54; Q51; R42; (follow links to similar papers)

20 pages, January 20, 2010

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

Carbon%20emission%20values%20in%20CBA%20WP.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Mats Berggren ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:vtiwps:2010_004 This page was generated on 2014-12-14 19:28:28