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

In series:ITF Research Reportsview more titles


Executive summary
Summary and recommendations
Challenges for including climate change effects in transport appraisal
Estimating the social cost of CO2 emissions
Uncertainty and transport appraisal of climate change effects
Discounting long-term effects of climate change for transport
List of participants
Annexes3 chapters available
Carbon value and discount rates in Japan
Carbon value and discount rates in the Netherlands
Carbon value and discount rates in Germany
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