Costs of Inaction on Key Environmental Challenges by OECD Organisation for Economic Co-operation and Development

By OECD Organisation for Economic Co-operation and Development

International locations this present day face quite a few environmental coverage demanding situations, comparable to weather swap, air and water toxins, natural-resource administration, traditional mess ups and environment-related dangers. the prices of no longer responding to them should be substantial, every so often representing an important drag on OECD economies.  This document presents introductory views at the charges of inactivity and discusses the various destiny difficulties prone to be encountered during this very advanced area.Table of content material :List of AcroymnsExecutive SummaryChapter 1. IntroductionChapter 2. expenditures of state of being inactive with admire to Air and Water PollutionChapter three. bills of inactiveness with recognize to weather ChangeChapter four. expense of inactiveness wiht recognize to Environment-Related commercial injuries and average DisastersChapter five. expenses of state of being inactive with appreciate to ordinary source ManagementChapter 6. precis and Conclusions

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Efforts to reduce one pollutant may therefore result in increased emissions of another pollutant. For instance, some measures applied to reduce SOX, NOx, and PM have the effect of increasing CO2 emissions; the ancillary effects in this case will be negative. The costs of “inaction” with respect to each individual pollutant will therefore depend on the level of “action” with respect to the other pollutant. The costs of inaction in the area of air and water pollution are heterogeneous, and include a wide variety of “use” and “non-use” values.

COSTS OF INACTION WITH RESPECT TO AIR AND WATER POLLUTION estate or employment markets. Even in the absence of formal policy “action”, there can therefore be (incomplete and imperfect) incentives to take environmental degradation into account in decision-making. g. lower property prices). This can complicate the assessment of the costs of inaction, because of the potential for double-counting. It can also be difficult to disentangle the costs associated with emissions of a particular pollutant from the costs of emissions of other pollutants.

For instance, in the valuation of public service health costs, it is important to take into account the means by which that service is financed. If it is financed through general tax receipts, the costs of inaction will be greater, the more distortionary the existing system of taxation. 30 COSTS OF INACTION ON KEY ENVIRONMENTAL CHALLENGES – ISBN 978-92-64-04577-4 – © OECD 2008 1. INTRODUCTION 3. g. abatement or conservation) is increasing from left to right on the x-axis. However, since the focus of this report is on “inaction”, the x-axis is reversed.

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