Green Accounting In Europe: A Comparative Study, Volume 2 (The Fondazione Eni Enrico Mattei (Feem) Series on Economics, the Environment and Sustainable ... (Feem) Series on Economics, the Environment)

530 Pages·2006·6.22 MB·English

by  Anil Markandya

Green Accounting in Europe
THE FONDAZIONE ENI ENRICO MATTEI (FEEM) SERIES ON ECONOMICS
AND THE ENVIRONMENT
Series Editor:Carlo Carraro,University ofVenice,Venice and Research Director,Fondazione
Eni Enrico Mattei (FEEM),Milan,Italy
Editorial Board
Kenneth J.Arrow,Department ofEconomics,Stanford University,Stanford,California,USA
William J.Baumol,CVStarr Center for Applied Economics,New York University,
New York City,USA
Partha Dasgupta,Cambridge University,Cambridge,UK
Karl-Göran Mäler,The Beijer International Institute ofEcological Economics,
The Royal Swedish Academy ofSciences,Stockholm,Sweden
Ignazio Musu,University ofVenice,Venice,Italy
Henry Tulkens,Center for Operations Research and Econometrics (CORE),Université
Catholique de Louvain,Louvain-la-Neuve,Belgium
The Fondazione Eni Enrico Mattei (FEEM) was established in 1989 as a non-profit,non-
partisan research institution.It carries out high-profile research in the fields ofeconomic
development,energy and the environment,thanks to an international network of
researchers who contribute to disseminate knowledge through seminars,congresses and
publications.The main objective ofthe Fondazione is to foster interactions among
academic,industrial and public policy spheres in an effort to find solutions to
environmental problems.Over the years it has thus become a major European institution for
research on sustainable development and the privileged interlocutor ofa number ofleading
national and international policy institutions.
The Fondazione Eni Enrico Mattei (FEEM) Series on Economics and the Environment
publishes leading-edge research findings providing an authoritative and up-to-date source of
information in all aspects ofsustainable development.FEEMresearch outputs are the
results ofa sound and acknowledged cooperation between its internal staffand a worldwide
network ofoutstanding researchers and practitioners.A Scientific Advisory Board of
distinguished academics ensures the quality ofthe publications.
This series serves as an outlet for the main results ofFEEM’s research programmes in the
areas ofeconomics,energy and the environment.
Titles in the series include:
Climate Change and the Mediterranean
Socio-economic Perspectives ofImpacts,Vulnerability and Adaptation
Edited by Carlo Giupponi and Mordechai Shechter
Game Practice and the Environment
Edited by Carlo Carraro and Vito Fragnelli
Analysing Strategic Environmental Assessment
Towards Better Decision-Making
Edited by Pietro Caratti,Holger Dalkmann and Rodrigo Jiliberto
Trade and Environment
Theory and Policy in the Context ofEU Enlargement and Economic Transition
Edited by John W.Maxwell and Rafael Reuveny
Green Accounting in Europe
A Comparative Study,Volume 2
Edited by Anil Markandya and Marialuisa Tamborra
Green Accounting in
Europe
A Comparative Study, Volume 2
Edited by
Anil Markandya
Fondazione Eni Enrico Mattei (FEEM), Milan,Italy and
Professor of Economics,University of Bath,UK
Marialuisa Tamborra
European Commission,Directorate General Research,
Brussels, Belgium
THE FONDAZIONE ENI ENRICO MATTEI (FEEM) SERIES ON
ECONOMICS AND THE ENVIRONMENT
Edward Elgar
Cheltenham,UK • Northampton,MA,USA
© Anil Markandya,Marialuisa Tamborra,2005
All rights reserved.No part of this publication may be reproduced,stored in
a retrieval system or transmitted in any form or by any means,electronic,
mechanical or photocopying,recording,or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
Glensanda House
Montpellier Parade
Cheltenham
Glos GL50 1UA
UK
Edward Elgar Publishing,Inc.
136 West Street
Suite 202
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
ISBN1 84542 114 0
Printed and bound in Great Britain by MPG Books Ltd,Bodmin,Cornwall
Contents
List of contributors vii
Preface xi
PART I DEVELOPMENTS IN METHODOLOGY
1. Introduction and project objectives 3
Anil Markandya and Marialuisa Tamborra
2. Developments in green accounting 15
Anil Markandya,Alistair Hunt and Ian Milborrow
3. Developments in pathway analysis 34
Paul Watkiss,Mike Holland and Katie King
4. Updates to exposure–response functions 41
Fintan Hurley,David Howard,Paul Watkiss and Mike Holland
5. Developments in valuation 65
Anil Markandya,Alistair Hunt,Paul Watkiss and Fintan Hurley
6. The methodology for the estimation of impacts and damage 87
costs caused by ambient air pollution
Bert Droste-Franke,Wolfram Krewitt,RainerFriedrich and
Alfred Trukenmüller
7. Defensive expenditures 93
Marialuisa Tamborra,Marcella Pavan,AnilMarkandya
and Alistair Hunt
PART II RESULTS
8. Estimates of damage costs from airpollution to human 113
health,cropsand materials
Bert Droste-Franke,Wolfram Krewitt,RainerFriedrich,
Alfred Trukenmüller,Marialuisa Tamborra,Gianluca
Crapanzano,Marcella Pavan,Paul Watkiss,Mike Holland,
Katie King,Anil Markandya,Ian Milborrow,Alistair Hunt,
v
vi Contents
Onno Kuik,Kees Dorland,FrankA.Spaninks and
John F.M.Helming
9. Attribution of air damages tocountries and economic 226
sectorsof origin
Bert Droste-Franke,Wolfram Krewitt,Rainer Friedrich
and Alfred Trukenmüller
10. Developments in estimation of damages to crops 293
Onno Kuik,Kees Dorland,Frank A.Spaninks and
John F.M.Helming
11. Forest and ecosystem damages 319
UrsulaTriebswetter andMarialuisa Tamborra
12. Valuation of water 363
Gianluca Crapanzano,Marcella Pavan and Alistair Hunt
13. Damages to land 381
Paul Watkiss,Mike Holland,Katie King and Alistair Hunt
14. Marginal cost estimates of greenhouse gas emissions 411
Richard S.J.Tol,Samuel Fankhauser,OnnoKuik and
Joel B.Smith
15. Environmental expenditures 429
Marialuisa Tamborra and Marcella Pavan
PART III CONCLUSIONS AND POLICY
RECOMMENDATIONS
16. Conclusions and policy recommendations 473
Anil Markandya and Marialuisa Tamborra
Index 503
Contributors
This book is based on the results of a research project called ‘Green
Accounting in Europe II’funded by the European Commission under the
Research Framework Programme.However,the book also benefited from
the contributions of additional researchers that were chosen for their
specific expertise.In the following the institutions that participated in the
project and their corresponding contributions to the chapters are pre-
sented.Then,the list of specific contributors is presented with their present
affiliation.
INSTITUTIONS PARTICIPATING IN THE PROJECT
AND THEIR CONTRIBUTIONS:
Organization Contribution
Bath University,UK Introduction and Project Objectives (Ch.1);
Developments in Green Accounting (Ch.2);
Developments in Valuation (Ch.5);Defensive
Expenditures (Ch.7);Estimates of Damage
Costs from Air Pollution to Human Health,
Crops and Materials (Ch.8);Marginal Cost
Estimates of Greenhouse Gas Emissions
(Ch.14);Conclusions and Policy
Recommendations (Ch.16).
Fondazione Eni Enrico Defensive Expenditures (Ch.7);Estimates of
Mattei,Italy Damage Costs from Air Pollution to Human
Health,Crops and Materials (Ch.8);
Valuation of Water (Ch.12);Environmental
Expenditures (Ch.15);Conclusions and Policy
Recommendations (Ch.16).
Institut für Energiewirtschaft The Methodology for the Estimation of
und Rationelle Impacts and Damage Costs Caused by
Energieanwendung (IER) – Ambient Air Pollution (Ch.6);Estimates of
Stuttgart University,Germany Damage Costs from Air Pollution to Human
Health,Crops and Materials (Ch.8);
vii
viii Contributors
Attribution of the Damages to Countries and
Economic Sectors of Origin (Ch.9).
AEA Technology Developments in Pathway Analysis (Ch.3);
Environment,UK Updates to Exposure–Response Functions
(Ch.4);Developments in Valuation (Ch.5);
Estimates of Damage Costs from Air
Pollution to Human Health,Crops and
Materials (Ch.8);Damages to Land (Ch.13).
Institute for Environmental Estimates of Damage Costs from Air
Studies (IVM), Pollution to Human Health,Crops and
Vrije Universiteit, Materials (Ch.8);Developments in Estimation
Amsterdam,The Netherlands of Damages to Crops (Ch.10);Marginal Cost
Estimates of Greenhouse Gas Emissions
(Ch.14).
Institute of Occupational Updates to Exposure–Response Functions
Medicine,UK (Ch.4);Developments in Valuation (Ch.5).
Institut für Forest and Ecosystem Damages (Ch.11).
Wirtschaftsforschung – IFO,
University of München,
Germany
LIST OF AUTHORS:
Gianluca Crapanzano,Etaconsult s.r.l.,Milan,Italy
Kees Dorland,Institute for Environmental Studies (IVM),Free University
Amsterdam,The Netherlands
Bert Droste-Franke, Institut für Energiewirtschaft und Rationelle
Energieanwendung (IER),Stuttgart University,Germany
Samuel Fankhauser,European Bank for Reconstruction and Development,
London,UK
Rainer Friedrich, Institut für Energiewirtschaft und Rationelle
Energieanwendung (IER),Stuttgart University,Germany
John F.M.Helming,Agricultural Economics Research Institute (LEI),The
Hague,The Netherlands
Mike Holland,EMRC,Reading,UK
David Howard,Institute of Terrestrial Ecology (ITE),UK
Alistair Hunt,University of Bath,UK
Contributors ix
Fintan Hurley,Institute of Occupational Medicine,UK
Katie King,AEA Technology Environment,UK
Wolfram Krewitt,Deutsches Zentrum für Luft- und Raumfahrt (German
Aerospace Center),Germany
Onno Kuik, Institute for Environmental Studies (IVM), Free University
Amsterdam,The Netherlands
Anil Markandya,Fondazione Eni Enrico Mattei (FEEM),Milan,Italy and
University of Bath,UK
Ian Milborrow,PricewaterhouseCoopers,UK
Marcella Pavan, Autorità per l’Energia Elettrica e il Gas (Italian Energy
Authority),Milan,Italy
Joel B.Smith,Stratus Consulting Inc.,Boulder,CO,USA
Frank A. Spaninks, Institute for Environmental Studies (IVM), Free
University Amsterdam,The Netherlands
Marialuisa Tamborra, European Commission, Directorate General
Research,Brussels,Belgium
Richard S.J. Tol, Centre for Marine and Climate Research, Hamburg
University,Hamburg,Germany
Ursula Triebswetter, IFO – Institut für Wirtschaftsforschung, Munich
University,Germany
Alfred Trukenmüller, Institut für Energiewirtschaft und Rationelle
Energieanwendung (IER),Stuttgart University,Germany
Paul Watkiss,AEA Technology Environment,UK