Methodologies for Environmental Valuation

Transcription

1 Methodologies for Environmental Valuation Sofia Ahlroth Environmental Economics Unit, Swedish EPA

2 What is valuation? An assessment of the importance of a certain amenity Can be in monetary or non-monetary terms

3 Why put a price on the environment? To rank impacts from a welfare perspective To be able to estimate whether benefits of a certain policy or action exceed the costs

4 Cost-benefit analysis Non-market goods and services are valued in monetary terms Can be used for setting targets or assessing net benefits of policies or measures Can span over several environmental issues

5 Monetary valuation methods Revealed willingness to pay Market prices Revealed preferences: Travel costs Hedonic pricing Production functions Expressed willingness to pay Stated preference methods: Contingent valuation Choice modelling Imputed willingness to pay Political willingness to pay Avoided restoration costs/ defensive expenditures Replacement costs Substitute costs Costs to reach target Taxes

6 Non-monetary valuation methods Proxy methods Ad hoc scoring Indicators in physical units Panel weighting methods Multicriteria analysis Ad hoc methods using expert assessments, stakeholders etc Distance-to-target methods

7 What do we want to know? Value to society Potential costs for stakeholders Revealed or expressed WTP Imputed WTP Political WTP Comparing costs and benefits Relative importance of environmental impacts Distance-totarget methods Panel weighting

8 Valuation in different tools Tool Users CBA Policy makers, public sector agencies LCA Policy makers, public sector agencies, companies LCC Companies, public sector agencies Study object Projects, policies Products, production systems, policies Products, production systems Need for valuation/ weighting Weights Midpoint/ endpoint Required Monetary Preferably endpoint Generic or specific weights Both generic and sitespecific Optional Both Both Primarily generic Optional Monetary Both Generic or companyspecific

9 Shortcuts Benefit transfer Generic values Valuation sets

10 Valuation sets Set Ecoindicator99 ReCiPe EPS2000 ExternE Ecotax02 Ecovalue08 Valuation/weighting method Damage in physical units Expressed&imputed WTP and market prices Expressed WTP and market prices Political WTP: taxes Expressed WTP

11 Comparing waste management scenarios Reduction in environmental burdens relative to baseline scenario 450% 400% 350% 300% 250% 200% Alt1 Alt2 Alt3 150% 100% 50% 0% Ecotax02 EPS2000 Eco-Indicator 99 EcoValue08

12 Comparing waste management scenarios Allocation to environmental impact categories. Total impact in million SEK Ecotax02 Ecovalue 08 MSEK Human toxicity MSEK Terrestrial ecotoxicity Baseline Alt 1 Alt 2 Alt 3 Marine water aquatic ecotoxicity Fresh water aquatic ecotoxicity Eutrophication Acidification Baseline Alt 1 Alt 2 Alt Photochemical oxidation Ozone layer depletion Global warming Biotic resources Abiotic resources

13 Conclusions? There are several methods and valuation sets out there do sensitivity analysis When in doubt use intervals

14 Thank you! Kolguskär, Stockholm archipelago