Adapting Transport Policy to Climate Change
Carbon Valuation, Risk and Uncertainty
Transport accounts for nearly a quarter of carbon dioxide emissions from fuel combustion.
The price attached to these emissions is critical to climate policies and emissions
mitigation efforts in the sector. As the impact of emissions on climate does not depend
on where CO2 is released, the price of carbon should be uniform. In reality, however,
it varies immensely, reflecting the complexity of assessing climate impacts.
This report reviews the three key challenges in considering the effects of carbon
dioxide emissions in economic appraisal: the valuation of carbon dioxide emissions,
the treatment of uncertainty in climate change and the approach used to discounting
future costs and benefits. The report reviews current approaches in selected countries
(France, Germany, Japan, The Netherlands, New Zealand, Norway, Sweden, the United
Kingdom and the United States) and provides examples of good practice and recommendations
for national and international policy making.
Published on November 24, 2015
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