Carbon emission values in cost benefit analyses

Download
Svante Mandell

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.

MEET US


7
Dec

Shipping and the environment – research meets reality

Centre for Transport Studies (CTS) in co-operation with Ports of Stockholm invite you to the seminar Shipping and the environment – research meets reality.

LATEST NEWS


2017-10-16

ERPUG Forum

The five-year anniversary of European Road Profile Users' Group (ERPUG) Forum will take place at Ramboll head quarter, Copenhagen, Denmark October 19-20, 2017.


2017-09-29

Self-driving buses in Sweden next year?

A self-driving, fossil-free bus. This idea might become reality through a forthcoming collaborative project involving the Swedish National Road and Transport Research Institute (VTI), Linköping University and several other participants. The project group aim...


2017-09-29

New climate-proof solutions for hard surfaces in cities

High-density road infrastructure that emphasise maximum durability and minimum maintenance create inflexible systems, which put increased stress on urban trees and lead to increased risk for flooding. Over the past five years, the ‘Climate-proof solutions for...


2017-09-29

VTI is preparing for automated vehicles

Automation of traffic systems will lead to major changes. The European Union’s (EU) CoEXist research project began in June 2017 with the aim of preparing cities and road operators for the introduction of self-driving vehicles. The Swedish National Road and...


2017-07-05

Vehicle Driver Monitoring: sleepiness and cognitive load

To prevent road crashes it is important to understand driver related contributing factors, which have been suggested to be the critical reason in 94 per cent of crashes. The overall aim of the project Vehicle Driver Monitoring has been to advance the...


2017-06-29

Tomas Svensson new director-general

Tomas Svensson was today appointed Director-General of VTI. Tomas has been acting Director-General since January 2017.