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Developing a weighting set based on monetary damage estimates: Method and case studies
KTH, School of Architecture and the Built Environment (ABE), Urban Planning and Environment, Environmental Strategies (moved 20130630).
2009 (English)Report (Other academic)
Abstract [en]

In environmental systems analysis tools such as cost-benefit analysis (CBA) and life-cycle assessments (LCA), generic values for impacts on the environment and human health are frequently used. There are several sets of generic values, which are based on different valuation methods, e.g. willingness-to-pay, abatement costs, taxes or non-monetary assessments. This study attempts to derive a consistent set of damage-based values based on estimation of willingness to pay (WTP) to avoid damages. Where possible we compile existing damage cost estimates from different sources. Currently, there are no generic damage costs available for eutrophication and acidification. We derive damage values for eutrophying and acidifying substances using WTP estimates from available valuation studies. For eutrophication, we derive benefit transfer functions for eutrophication that allows calculation of site-specific values. We compare the derived ecosystem damage values to existing estimates of the cost for reducing nitrogen and phosphorus emissions to water. The analysis indicates that many abatement measures for nitrogen have a positive net benefit while most measures to reduce phosphorus cost more than the benefit achieved when estimated on a general level and should, instead, be assessed on a case-specific level. Moreover, a comparison of the existing environmental taxes on nitrogen, nitrogen oxides and phosphorus in Sweden show that the current tax rates do not reflect the externalities from these pollutants. Subsequently, we construct a weighting set by combining the derived values with existing generic damage values for human toxicity, photochemical oxidants and global warming. The weighting set - labelled Ecovalue09 - is applied to three case studies and the outcome is compared to the results using other weighting sets.

Place, publisher, year, edition, pages
KTH Royal Institute of Technology, 2009. , 62 p.
TRITA-INFRA-FMS, ISSN 1652-5442 ; 2009:1
National Category
Social Sciences Interdisciplinary
URN: urn:nbn:se:kth:diva-144409OAI: diva2:713329

QC 20140423

Available from: 2014-04-22 Created: 2014-04-22 Last updated: 2014-04-23Bibliographically approved

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