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Evaluating External Costs and Benefits Resulting from a Cleaner Environment in a Stylized CGE Model

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Environment and Transport in Economic Modelling

Abstract

Production and consumption activities cause a wide range of damage. Such damage is called external costs when they are not reflected in the market prices of the products. There are different types of external costs: for example, transport is responsible not only for air pollution but also for accidents, health diseases, traffic congestion, noise, barrier effects and visual intrusion. Estimating the costs associated with such damage is extremely difficult. The state of the art of environmental evaluation is poor due to the lack of specific studies of the relationship between pollutants and their impact on the ecosystem (for Italian data see Pavan, 1995).

I thank Andrea Beltratti, Christian M. Dufournaud, Alberto Majocchi, Karl-Göran Mäler, Alberto Pench, Sherman Robinson and an anonimous rderee for valuable comments. Usual caveats apply.

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Pireddu, G. (1998). Evaluating External Costs and Benefits Resulting from a Cleaner Environment in a Stylized CGE Model. In: Roson, R., Small, K.A. (eds) Environment and Transport in Economic Modelling. Fondazione Eni Enrico Mattei (FEEM) Series on Economics, Energy and Environment, vol 10. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-9109-6_6

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  • DOI: https://doi.org/10.1007/978-94-015-9109-6_6

  • Publisher Name: Springer, Dordrecht

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