The Indirect Costs and Benefits of Greenhouse Gas Limitations: Handbook Reports

The purpose of this report is to evaluate GHG limitation issues in a broader context. This includes the impacts of projects on vulnerable groups, the impacts on the environment more generally and the impacts on sustainability in a wider sense. It also offers some advice on how a decision-making framework can bring together these different dimensions. The structure of the guidelines is as follows. Section 2 introduces essential cost concepts and discusses the adjustments needed to the financial costs of different components, to arrive at the true economic costs. Section 3 looks at the macroeconomic impacts of different GHG limitation projects/policies. Section 4 discusses the way in which the sustainability concerns of such projects/policies can be monitored. Section 5 brings these different components together and looks at different methods of project selection. Section 6 provides a basic framework of impacts that are likely to arise in different GHG-related projects/policies, and what kind of method of estimation is available for these different impacts. Sections 7 to 9 go into greater depth on specific impacts. Sections 7 and 8 look at the employment and distributional effects respectively, and how they might be estimated. Section 9 evaluates the benefits in terms of changes in environmental damage resulting from GHG projects/policies. Section 10 provides three case studies in which the methods outlined in the report are applied. These case studies consider a biogas plant in Tanzania, a forestry project in the Russian Federation, and an energy efficiency project in Thailand. Section II concludes the report.