Monetary Valuation of Emissions in Implementing Environmental Policy

Marc D. Davidson, Bart H. Boon and Jessica van Swigchem

Journal of Industrial Ecology, 2005, vol. 9, issue 4, 145-154

Abstract: At various levels of environmental policy making there is a demand to translate polluting emissions into monetary units. In the so‐called reduction cost approach, based upon policy targets, polluting emissions are expressed in monetary terms by determination of the marginal unit reduction cost at the emission target level. This approach provides shadow prices for emissions by which it can be established whether a certain measure or technology belongs to the most efficient set of measures by which the policy targets can be reached. This article argues that, if clear (generic) government targets such as national emission reduction targets exist for an emission, shadow prices derived by this method are to be preferred to shadow prices derived by other methods for decisions at the project (implementation) level. By application of the reduction cost approach, implementation decisions can be made that are both cost‐effective and consistent with government policy.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1162/108819805775248016

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:inecol:v:9:y:2005:i:4:p:145-154

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1088-1980

Access Statistics for this article

Journal of Industrial Ecology is currently edited by Reid Lifset

More articles in Journal of Industrial Ecology from Yale University
Bibliographic data for series maintained by Wiley Content Delivery ().