Environmental benefit-cost analysis: a comparative analysis between the United States and the United Kingdom

Aldy, Joseph E., Atkinson, Giles ORCID: 0000-0001-6736-3074 and Kotchen, Matthew J. (2021) Environmental benefit-cost analysis: a comparative analysis between the United States and the United Kingdom. Annual Review of Resource Economics, 13 (1). pp. 267-288. ISSN 1941-1340

Text (Aldy-Atkinson-Kotchen (2021) Environmental CBA in US-UK -- Ann. Rev. Res. Econ. (forthcoming)) - Accepted Version Download (528kB)

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Abstract

The United States and United Kingdom have long-standing traditions in the use of environmental benefit-cost analysis (E-BCA). While there are similarities between how EBCA is utilized, there are significant differences too, many of which mirror ongoing debates and recent developments in the literature on environmental and natural resource economics. We review the use of E-BCA in both countries across three themes: (a) the role of long-term discounting, (b) the estimation and use of carbon valuation, and (c) the estimation and use of the value of a statistical life. In each case, we discuss how academic developments are (and are not) translated into practical use and draw comparative lessons. We find that, in some cases, practical differences in E-BCA can be overstated, although in others these seem more substantive. Advances in the academic frontier also raise the question of when and how to update practical E-BCA, with very different answers across our themes.

Item Type:	Article
Official URL:	https://www.annualreviews.org/journal/resource
Additional Information:	© 2021 Annual Reviews
Divisions:	Geography & Environment
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HC Economic History and Conditions J Political Science > JK Political institutions (United States) J Political Science > JN Political institutions (Europe) > JN101 Great Britain
JEL classification:	H - Public Economics > H4 - Publicly Provided Goods > H43 - Project Evaluation; Social Discount Rate Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
Date Deposited:	18 Jun 2021 14:12
Last Modified:	12 Dec 2024 02:33
URI:	http://eprints.lse.ac.uk/id/eprint/110879

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