A note on how to undertake a cost-benefit analysis in monetary and environmental units

Abstract

In this note we discuss two alternative ways of undertaking a social cost-bene t analysis. One approach is the conventional one where ben- e ts and costs are expressed in monetary units. The other approach uses an environmental asset as the payment vehicle. The properties of the two approaches are discussed and the measurement problems are stressed.

Keywords

Cost-benefit analysis; externalities; choice of numeraire; habitat equivalence analysis; resource equivalency methods

Published in

CERE Working Paper
2010, number: 2010:1
Publisher: Centre for Environmental and Resource Economics (CERE)

SLU Authors

• Johansson, Per-Olov

  • Stockholm School of Economics

• Kriström, Bengt

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Social Sciences
Environmental Sciences and Nature Conservation
Economics and Business

Permanent link to this page (URI)

https://res.slu.se/id/publ/32323