CostBenefit Analysis of the Clean Air for Europe Programme

1

• Cost-Benefit Analysis of the Clean Air for
  Europe Programme
• CLRTAP, TFIAM 28th session Haarlem, 7-9 May 2003
• Matti VainioEuropean Commission, DG Environment,
  
• Air, Noise and Transport Unit

2
CAFE Baseline Stakeholder consultation

• Access to the restricted web-site
• forum.europa.eu.int
• Go to Environment DG
• Self register to Circa
• Once in, apply to CAFE Baseline Stakeholder
  consultation
• Your application will be sent to the leaders of
  the web-site (Matti Vainio, Meera Ghani and
  Janusz Cofala).
• One of them will approve you and they you will
  have the rights to down and upload data, see the
  reference documents and who else is using the
  web-site (currently 77 users)

3
Take home message

• Get a team to work closely with IIASA to take the
  results from RAINS, complement them with
  unquantified impacts (in a multi-criteria
  framework), and assess all monetary and non
  monetary benefits.
• As an outcome the costs (from RAINS) and benefits
  (from this contract) will be analysed and
  presented in a transparent manner.

4
Introduction

• Several inter-linked contracts and lines of
  development to carry out the work required
• Systematic Review of Health Aspects of Air
  Quality in Europe (WHO)
• Development of the baseline and policy scenarios
  and integrated assessment modelling framework
  (RAINS)
• Further development and application of the
  TREMOVE transport model (University of Leuven).

• CAFE programme launched on 4 May 2001
• Thematic strategy outline the measures required
  to improve air quality and to meet environmental
  objectives in Europe
• Followed and/or accompanied by legislative
  proposals

5
Service contract

• Open call for tender launched on 23 April, due 2
  June, decision by mid July, 2003
• Objectives
• Analysis of the impacts and the costs and
  benefits of different policy options for
  improving air quality in the enlarged EU.
• Identify possible ancillary benefits and
  dis-benefits

6
Scope

• Current EU Member States, and relevant European
  Economic Area and accession countries as well as
  Switzerland
• 2010, 2015 and 2020.
• Primary and secondary particles, sulphur dioxide,
  nitrogen oxides, and tropospheric ozone and their
  effects on human health and the environment.
• Sectors transport (all modes), energy production
  and combustion, industry and agriculture.

7
Methodology

• Needs to be transparent.
• Based on the input from team lead by IIASA and
  from other sources
• Impact assessment needs to be carried out both in
  qualitative and quantitative terms.
• Assessment is formally carried out through a
  multi-criteria criteria analysis

8
Tasks Two phases

• Phase 1 Develop analytical framework (16 months)
  
• 1. Develop conceptual framework for to quantify
  the impacts of baseline scenario and alternative
  scenarios
• 2. Develop multi-criteria analysis
• 3. Ensure that costs and benefits are measured
  with same metric

9
Phase 1 Develop analytical framework

• 4. Review and consultations on the key monetary
  unit values
• Link with NEBEI made explicit and workshop(s)
  foreseen
• Stakeholder consultation foreseen
• Specific budget reserve for NGO contribution
  requested
• Update the BeTA monetary values established in
  the BeTa (successor of Alpha) database/calculation
  tool (website given at the end of presentation)
• The outcome of this task will be a set of
  state-of-the-art monetary unit values and
  functions of marginal damage from air pollution
  for 2000

10
Phase 1 Develop analytical framework

• 5. Estimate marginal damage of pollutants for
  2010, 15 and 20
• 6. Include the costs and benefits of the impacts
  of local scale
• 7. Develop framework analyse social and
  macro-economic impacts of improved air quality
• 8. Review and consult key monetary unit values
• 9. Create a modelling tool and reporting of the
  methodology
• 10. Carry out first assessments
• Note Analytical capability to carry out analysis
  needs to be partly operational within 12 months
  of the signing of he contract, and fully
  operational within 16 months of signing the
  contract.

11
Phase 2 Analyse (12 months)

• 1. Carry out bulk of the assessments
• 2. Report the results
• Note Phase 2 corresponds mainly to Lot 2 and
  Lot 3 of the Service Contract for the
  Development of the Baseline and Policy Scenarios
  and Integrated Assessment Modelling Framework for
  the Clean Air for Europe (CAFE) programme

12
Organisation of work

• Essential to share information with CLRTAP
• Works for DG Environment
• WG Target Setting and Policy Assessment will give
  guidance to DG Environment on choosing scenarios
  (including instrument choice)
• Contractor will work closely with IIASA (RAINS)
  and and University of Leuven (TREMOVE)

13
Budget and further info

• Total budget 500.000 split as follows
• Phase 1 300.000.
• Phase 2 200.000
• For details see
• http//www.europa.eu.int/comm/environment
• /air/cafe/activities/cba.htm (CAFE CBA)
• /enveco/studies2.htm (BeTa (benefits transfer)