Benefit-Cost Analysis of Air Pollution, Energy, and Climate Regulations

This element provides a review and synthesis of research on economic methods for evaluating regulations that improve air quality, save energy, and reduce climate risks. It is intended for regulators, analysts, and scholars interested in the nexus between scholarship and practice. Topics include cost estimation, benefit valuation, discounting methods, distribution of costs and benefits, and uncertainty evaluation.

Format: Paperback / softback
Length: 75 pages
Publication date: 08 June 2023
Publisher: Cambridge University Press

This comprehensive element provides a thorough review and synthesis of the research on economic methods for evaluating regulations that aim to enhance air quality, conserve energy, and mitigate climate risks. Designed with a diverse audience in mind, including regulators, policymakers, analysts in government agencies and research organizations, as well as academic scholars and their graduate students, the content explores various topics related to regulatory impact assessment.

The evolution of regulatory impact assessment within the OECD is examined, highlighting key developments and challenges. Cost estimation methodologies, encompassing engineering, partial equilibrium, and general equilibrium approaches, are discussed, emphasizing their applications in assessing the economic implications of regulations. Benefit valuation, with a particular focus on the value of reducing the risk of illness and premature mortality, is explored, employing various methods such as cost-benefit analysis and health impact assessment.

The pricing of carbon emissions is examined, considering the use of market-based mechanisms, such as carbon taxes or cap-and-trade systems, and the associated challenges in designing and implementing effective carbon pricing policies. Discounting methods, which play a crucial role in evaluating the long-term costs and benefits of regulations, are explored, including their relationship to carbon pricing and the evaluation of uncertainties associated with climate change.

The distribution of regulatory costs and benefits is analyzed, considering factors such as equity, distributional impacts, and the potential for regressivity. Uncertainty evaluation methods are discussed, encompassing approaches such as scenario analysis, sensitivity analysis, and Bayesian inference, to address both less and more fundamental uncertainty in regulatory decision-making.

A perspective on the relevance and limitations of current research is offered, highlighting areas where further advancements are needed to enhance the effectiveness and efficiency of economic evaluation of regulations in addressing climate change and other environmental challenges.

This title is also available as Open Access on Cambridge Core, ensuring widespread access to the valuable insights and knowledge contained within the research.

Weight: 146g
Dimension: 152 x 229 x 8 (mm)
ISBN-13: 9781009189453