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While the costs of implementing an environmental policy are often well known, there is usually an inadequate understanding of the consequences of environmental policy inaction or, in other words, the benefits of policy intervention. For a number of reasons – such as non-linear environmental impacts, aggregation across heterogeneous populations, secondary/ancillary impacts on other environmental factors – it can be extremely difficult to properly assess these consequences. In order to better inform decision making, OECD Environment Ministers requested in April 2004 that the OECD initiate work on the ‘costs of inaction’. A number of background reports have been prepared to that end.

• Use of Discount Rates in the Estimation of the Costs of Inaction with Respect to Selected Environmental Concerns by Cameron Hepburn
• The Health Costs of Inaction with Respect to Air Pollution by Pascale Scapecchi
• Unsafe Water, Sanitation and Hygiene: Associated Health Impacts and the Costs and Benefits of Policy Interventions at the Global Level by Nicolas Gagnon
• Health Costs of Inaction with Respect to Water Pollution in OECD Countries by Nicolas Gagnon

Environment Policy Committee High-Level Special Session on the Costs of Inaction, 14 April 2005

To further investigate this issue, the Environment Policy Committee organised a High-Level Special Session (HLSS) on 14 April 2004 at OECD Headquarters.

• Agenda
• Background Documents
  • The Costs of Inaction with Respect to Human Health Impacts from Pollution: Background paper prepared by Dr. Stale Navrud (Consultant)
  • The Costs of Inaction with Respect to Climate ChangeBackground paper prepared by William R. Cline (Consultant)
  • The Costs of Inaction with Respect to Biodiversity Loss: Background paper prepared by Geoffrey Heal (Consultant)
• Presentations