Environmental Economics and Policy

5.

Policy Analysis Methods

5.1.

Cost-Benefit Analysis

5.1.1.

Theoretical Foundation

5.1.2.

Steps in Conducting CBA

5.1.2.1.

Project Definition and Scope

5.1.2.2.

Identification of Costs and Benefits

5.1.2.3.

Quantification Methods

5.1.2.4.

Monetization Techniques

5.1.2.5.

Discounting Procedures

5.1.2.6.

Sensitivity Analysis

5.1.2.7.

5.1.3.

Discounting Issues

5.1.3.1.

Social Discount Rate

5.1.3.2.

Declining Discount Rates

5.1.3.3.

Intergenerational Equity

5.1.3.4.

Climate Change Applications

5.1.4.

Distributional Analysis

5.1.4.1.

Winners and Losers

5.1.4.2.

5.1.4.3.

Compensation Mechanisms

5.1.5.

Limitations and Criticisms

5.1.5.1.

Monetization Problems

5.1.5.2.

Distributional Blindness

5.1.5.3.

Democratic Deficits

5.2.

Cost-Effectiveness Analysis

5.2.1.

When to Use CEA

5.2.2.

Equimarginal Principle

5.2.3.

Marginal Abatement Cost Curves

5.2.4.

Least-Cost Solutions

5.2.5.

Multi-Criteria Decision Analysis

5.3.

Risk Assessment and Management

5.3.1.

Risk Assessment Framework

5.3.1.1.

Hazard Identification

5.3.1.2.

Dose-Response Assessment

5.3.1.3.

Exposure Assessment

5.3.1.4.

Risk Characterization

5.3.2.

Risk Management Principles

5.3.2.1.

Risk-Risk Trade-offs

5.3.2.2.

Risk Communication

5.3.2.3.

Stakeholder Involvement

5.3.3.

Uncertainty and Decision-Making

5.3.3.1.

Monte Carlo Analysis

5.3.3.2.

Scenario Planning

5.3.3.3.

Robust Decision-Making

5.3.4.

Precautionary Principle

5.3.4.1.

Strong vs. Weak Versions

5.3.4.2.

Applications and Criticisms

5.3.4.3.

Safe Minimum Standards

5.4.

Regulatory Impact Analysis

5.4.1.

Legal Requirements

5.4.2.

Analytical Framework

5.4.3.

Baseline Scenarios

5.4.4.

Alternative Policy Options

5.4.5.

Uncertainty Analysis

Previous

4. Environmental Policy Instruments

Go to top

Next

6. Applications to Environmental Problems