Economics and Analysis
Economic considerations, and analysis of economic implications, are a key consideration in most environmental decisions.
Decision-making needs to go through rigorous processes of analysis and appraisal and ex-post evaluation after implementation and economists play a central role in this process, particularly with respect to the estimation of costs and benefits, including non market benefits.
Another major priority for economists working in the area of environmental protection is the promotion where appropriate of economic instruments, including "green taxes", permit trading schemes and liability regimes, as promising ways of tackling environmental problems.
Economic instruments are capable of influencing the behaviour of consumers and manufacturers in ways that are more subtle, yet potentially more powerful, than conventional regulatory controls, and which are capable of achieving results at lower cost.
Wider issues
See information on economics and statistics across Defra as a whole.
Business areas
Economic analysis has played, and continues to play, a particularly important role in the business areas set out below.
Links to some specific papers and consultation documents on key policies and economic instruments are also given.
Climate change and sustainable energy
- A study to estimate ticket price changes for aviation in the EU Emissions Trading Scheme - November 2007
- Greenhouse Gas Policy Evaluation and Appraisal in Government Departments (PDF 300 KB)
- UK greenhouse gas emissions trading scheme
- Climate change agreements and the climate change levy
- Economic instruments and energy efficiency
- Links to websites on climate change and energy efficiency
Air quality
- National air quality strategy
- Valuation of air pollution effects
- Valuation of health benefits associated with reductions in air pollution
- Valuation of air pollution effects on ecosystems: a scoping study
Waste
- The role of economic instruments and targets
- Valuation of Health and Environmental Impacts
- Modelling and Analytical Support
Water
- Implementation of the Water Framework Directive
- The role of economic instruments
- Water Supply Industry Periodic review
- Diffuse water pollution from agriculture
Environmental liability
- The Environmental Liability Directive
Chemicals
- Study into the benefits of chemicals regulation (external site)
- The EU White Paper on Chemicals
- The role of economic instruments
- Pesticides - economic instruments and the pesticides voluntary initiative
Appraisal, evaluation and valuation of environmental costs and benefits
- Greenhouse Gas Policy Evaluation and Appraisal in Government Departments (PDF 300 KB)
- Green book - 2003 edition: appraisal and evaluation in central Government (on HM Treasury website)
- Multi-criteria analysis manual (on the ODPM website)
- Policy appraisal and the environment
- Review of technical guidance on environmental appraisal
- Ex-post policy evaluation of environmental policy
- Valuation of environmental costs and benefits
- Environmental valuation source list for the UK
- Environmental Valuation Reference Inventory (EVRI). An international database of environmental valuation studies, to which, through Defra's support, Environment Canada is offering is offering free access to all UK-based internet users.
- The social costs of carbon
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Page last modified
5 March 2008
Page published 13 November 2002