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Carbon Emissions and Cost Benefit Analyses

Author

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  • Svante Mandell

    (VTI)

Abstract
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 carbon 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 the approach difficult, we argue that it is still preferable to a social cost approach.

Suggested Citation

  • Svante Mandell, 2013. "Carbon Emissions and Cost Benefit Analyses," International Transport Forum Discussion Papers 2013/32, OECD Publishing.
    • Handle: RePEc:oec:itfaab:2013/32-en
    DOI: 10.1787/5jz40rmnqzvc-en
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    File URL: https://doi.org/10.1787/5jz40rmnqzvc-en
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    Citations

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    Cited by:

    1. Aydin Shishegaran & Arshia Shishegaran & Gabriella Mazzulla & Carmen Forciniti, 2020. "A Novel Approach for a Sustainability Evaluation of Developing System Interchange: The Case Study of the Sheikhfazolah-Yadegar Interchange, Tehran, Iran," IJERPH, MDPI, vol. 17(2), pages 1-25, January.
    2. P.C. Bueno & J.M. Vassallo & K. Cheung, 2015. "Sustainability Assessment of Transport Infrastructure Projects: A Review of Existing Tools and Methods," Transport Reviews, Taylor & Francis Journals, vol. 35(5), pages 622-649, September.

    More about this item

    Keywords

    carbon value; climate change; cost-benefit analysis; policy;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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