Costs and benefits of the green transitionenvisaged in the Italian NRRP - An evaluation using the social cost of carbon

Matteo Alpino, Luca Citino and Federica Zeni

Energy Policy, 2023, vol. 182, issue C

Abstract: We perform an analysis of the green investments contained in the Italian National Recovery and Resilience Plan (NRRP) by comparing environmental benefits to the investment cost. We compute the future discounted environmental benefits in terms of expected greenhouse gases emission reductions using various estimates of the Social Cost of Carbon. Our results suggest that several projects would not have a positive net present value, unless the discount rate is relatively low and benefits accruing to developing countries receive a higher weight. The fact that investments under the NRRP are financed via long-term debt helps in bridging the gap between costs and environmental benefits. Investments in renewable energy are an exception, as their environmental benefits outweigh the cost within a short time-frame.

Keywords: Social cost of carbon; National recovery and resilience plan (search for similar items in EconPapers)
JEL-codes: D61 P18 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Costs and benefits of the green transition envisaged in the italian NRRP. An evaluation using the Social Cost of Carbon (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:182:y:2023:i:c:s0301421523003294

DOI: 10.1016/j.enpol.2023.113744

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