Economic Valuation of External Costs of Fuel Cycles. Testing the Benefit Transfer Approach

Author(s):  
StåLe Navrud
2017 ◽  
Vol 32 (1-2) ◽  
pp. 171-175 ◽  
Author(s):  
Vojtěch Máca ◽  
Jan Melichar ◽  
Milan Ščasný ◽  
Markéta Braun Kohlová

Abstract Background: Monetized environmental health impact assessments help to better evaluate the environmental burden of a wide range of economic activities. Apart from the limitations and uncertainties in physical and biological science used in such assessments, assumptions taken from economic valuation may also substantially influence subsequent policy-making considerations. Aim: This study attempts to demonstrate the impact of normative policy assumptions on quantified external costs using a case study of recently discussed variants of future coal mining and use of extracted coal in electricity and heat generation in the Czech Republic. Methods: A bottom-up impact-pathway approach is used for quantification of external costs. Several policy perspectives are elaborated for aggregating impacts that differ in geographic coverage and in how valuation of quantified impacts is adjusted in a particular perspective. Results: We find that the fraction of monetized external impacts taken into policy-making considerations may vary according to choice of decision perspective up to a factor of 10. Conclusion: At present there are virtually no hard rules for defining geographical boundaries or adjusting values for a summation of monetized environmental impacts. We, however, stress that any rigorous external cost assessment should, for instance in a separate calculation, take account of impacts occurring beyond country borders.


<em>Abstract.</em>—In this paper, we provide an introduction to water quality benefit estimation for noneconomists. Net water quality benefits are typically measured using the concept of consumer surplus, which is estimated using a number of economic valuation methodologies. These are divided into direct and indirect methods. Direct methods involve questioning survey respondents to determine their consumer surplus. Indirect methods use data from consumer market behavior to estimate economic values. When limited time or funding preclude costly data collection and the development of new consumer surplus estimates, the method of benefit transfer is used to tailor preexisting consumer surplus estimates to fit new policy situations. We provide an example of benefit transfer by estimating the value of water quality improvements for the Cape Fear River in North Carolina. Benefit transfer methods are used with three valuation approaches to estimate the benefits of water quality improvement.


1997 ◽  
pp. 121-136 ◽  
Author(s):  
W. Krewitt ◽  
P. Mayerhofer ◽  
R. Friedrich ◽  
A. Trukenmüller ◽  
N. Eyre ◽  
...  

2018 ◽  
Vol 18 (8) ◽  
pp. 5967-5989 ◽  
Author(s):  
Ulas Im ◽  
Jørgen Brandt ◽  
Camilla Geels ◽  
Kaj Mantzius Hansen ◽  
Jesper Heile Christensen ◽  
...  

Abstract. The impact of air pollution on human health and the associated external costs in Europe and the United States (US) for the year 2010 are modeled by a multi-model ensemble of regional models in the frame of the third phase of the Air Quality Modelling Evaluation International Initiative (AQMEII3). The modeled surface concentrations of O3, CO, SO2 and PM2.5 are used as input to the Economic Valuation of Air Pollution (EVA) system to calculate the resulting health impacts and the associated external costs from each individual model. Along with a base case simulation, additional runs were performed introducing 20 % anthropogenic emission reductions both globally and regionally in Europe, North America and east Asia, as defined by the second phase of the Task Force on Hemispheric Transport of Air Pollution (TF-HTAP2). Health impacts estimated by using concentration inputs from different chemistry–transport models (CTMs) to the EVA system can vary up to a factor of 3 in Europe (12 models) and the United States (3 models). In Europe, the multi-model mean total number of premature deaths (acute and chronic) is calculated to be 414 000, while in the US, it is estimated to be 160 000, in agreement with previous global and regional studies. The economic valuation of these health impacts is calculated to be EUR 300 billion and 145 billion in Europe and the US, respectively. A subset of models that produce the smallest error compared to the surface observations at each time step against an all-model mean ensemble results in increase of health impacts by up to 30 % in Europe, while in the US, the optimal ensemble mean led to a decrease in the calculated health impacts by  ∼  11 %. A total of 54 000 and 27 500 premature deaths can be avoided by a 20 % reduction of global anthropogenic emissions in Europe and the US, respectively. A 20 % reduction of North American anthropogenic emissions avoids a total of  ∼  1000 premature deaths in Europe and 25 000 total premature deaths in the US. A 20 % decrease of anthropogenic emissions within the European source region avoids a total of 47 000 premature deaths in Europe. Reducing the east Asian anthropogenic emissions by 20 % avoids  ∼  2000 total premature deaths in the US. These results show that the domestic anthropogenic emissions make the largest impacts on premature deaths on a continental scale, while foreign sources make a minor contribution to adverse impacts of air pollution.


2002 ◽  
Vol 3 (1) ◽  
pp. 85-104 ◽  
Author(s):  
Michael Ahlheim ◽  
Ulrike Lehr

AbstractCost-benefit analysis of environmental projects often requires economic valuation procedures that are time-consuming and costly. Therefore, the wish to short-cut these procedures comes naturally, e.g. using the so-called „benefit transfer“. This method enables the researcher to use results from previous studies to calculate expected benefits of a planned project. In this paper we discuss the chances and limits of this approach from theoretical and empirical points of view. Starting from the welfare theoretical fundamentals of economic valuation we show that the road to any empirical measure is already marked by various assumptions. Taking a detailed look at the techniques of benefit transfers the paper arrives at recommendations for future benefit transfer studies.


Author(s):  
Kamthorn Thambhitaks ◽  
Jirawan Kitchaicharoen

This study aims to assess the external costs of environmental impacts associated with the rice production systems using LCA approach and evaluated them into the economic value. The study compared the different chemical and energy use, as well as straw management of the three different rice production systems, included the mainstream conventional rice system, GAP rice system, and the organic rice system in Northern Thailand. The LCA analysis quantified the midpoint and endpoint of five environmental impacts, including climate change, terrestrial acidification, eutrophication, water depletion, and human health damage, from cradle-to-farm gate. The results of economic valuation revealed that the external costs of the conventional and GAP rice systems have significantly higher than that of the organic system. Most external costs came from the wastewater treatment cost due to the eutrophication mainly arising from the use of chemical fertilizer. Besides, about one-fourth of the total external costs came from the human health damage cost due to the open-air rice straw burning. To reduce the external costs of rice production, the amount of chemical fertilizer use causing eutrophication should be diminished and replaced by applying organic fertilizer from incorporating rice straw into the soil as well as growing a rotational crop after rice cultivation to stop the open-air rice straw burning and reduced the human health damage. The government should encourage rice farmers to the organic rice farming and manage the rice straw without burning because they may have the cost burden, whereas society gains more benefits from less pollution. Keywords: Economic valuation, Environmental impacts, Life Cycle Assessment, Rice production systems, Thai Good Agricultural Practice


Sign in / Sign up

Export Citation Format

Share Document