Draft reference document on Economics and Cross-Media

1,77
MB

175
stron

6056
ID JRC-IPTS Instituto de Prospectiva Tecnológica (IPTS)

2006
rok

EXECUTIVE SUMMARY I

PREFACE.V

SCOPE XIII

1 GENERAL INFORMATION ON ECONOMICS AND CROSS-MEDIA EFFECTS 1

2 CROSS-MEDIA GUIDELINES. 7

2.1 Introduction 7

2.2 Simplification techniques 9

2.3 Guideline 1 – Scope and identify the alternative options 11

2.4 Guideline 2 – Inventory of consumptions and emissions 12

2.4.1 Data quality. 12

2.4.2 Energy (Electricity and Heat) 13

2.4.2.1 Energy efficiency . 14

2.4.2.2 Electricity and heat used in the process 14

2.4.2.3 The European electricity and heat mix . 15

2.4.3 Waste 16

2.5 Guideline 3 – Calculate the cross-media effects . 17

2.5.1 Human toxicity 19

2.5.1.1 Assessing the human toxicity potential of a proposal. 19

2.5.1.2 Issues to consider 19

2.5.2 Global warming . 20

2.5.2.1 Assessing the global warming potential of a proposal . 20

2.5.2.2 Issues to consider 21

2.5.3 Aquatic toxicity . 21

2.5.3.1 Assessing the aquatic toxicity potential of a proposal 21

2.5.3.2 Issues to consider 22

2.5.4 Acidification 23

2.5.4.1 Assessing the acidification potential of a proposal. 23

2.5.4.2 Issues to consider 24

2.5.5 Eutrophication . 24

2.5.5.1 Assessing the eutrophication potential of a proposal 24

2.5.5.2 Issues to consider 25

2.5.6 Ozone depletion. 25

2.5.6.1 Assessing the ozone depletion potential of a proposal . 26

2.5.6.2 Issues to consider 26

2.5.7 Photochemical ozone creation potential 26

2.5.7.1 Assessing the photochemical ozone creation potential of a proposal. 27

2.5.7.2 Issues to consider 27

2.6 Guideline 4 – Interpret the cross-media conflicts 28

2.6.1 Simple comparison of each of the environmental themes . 28

2.6.2 Normalisation to European totals 29

2.6.3 Normalisation against European pollution emission register data . 30

2.6.4 Screening local environmental effects . 30

2.7 Conclusions on cross-media effects 31

3 THE COSTING METHODOLOGY 33

3.1 Guideline 5 – Scope and identify the alternative options 34

3.2 Guideline 6 – Gather and validate the cost data 35

3.2.1 Sources of cost data . 35

3.2.2 Documenting data uncertainty . 36

3.2.3 Summary of guideline 6. 36

3.3 Guideline 7 – Define the cost components 37

3.3.1 Check-list of cost components. 37

3.3.2 Costs that need to be identified separately. 40

3.3.3 Scale factors for plants. 41

3.3.4 Summary of Guideline 7 42

3.4 Guideline 8 – Process and present the cost information 42

3.4.2 Inflation.43

3.4.2.1 Establishing prices in the base year 43

3.4.2.2 Real and nominal prices44

3.4.3 Discounting 46

3.4.3.1 Present value .46

3.4.3.2 Net present value.46

3.4.3.3 Discount and interest rates 47

3.4.4 Calculating annual costs.48

3.4.5 New plant location .49

3.4.6 Other ways to process cost data .49

3.4.7 Summary of Guideline 8 50

3.5 Guideline 9 – Attributing costs to environmental protection.50

4 EVALUATING THE ALTERNATIVES.51

4.1 Cost effectiveness analysis 52

4.2 Apportioning costs between pollutants 52

4.3 Balancing costs and environmental benefits53

4.3.1 Reference prices .53

4.3.2 External costs .60

4.3.3 Conclusion on evaluating the alternatives62

5 ECONOMIC VIABILITY IN THE SECTOR.63

5.1 Introduction.63

5.2 Industry structure .65

5.2.1 Describing industry structure .65

5.2.2 Industry structure examples .66

5.2.3 Conclusion on industry structure66

5.3 Market structure66

5.3.1 Describing market structure .66

5.3.1.1 Analysing the market using Porter’s five forces theory67

5.3.2 Examples of Market Structure69

5.3.3 Conclusion on market structure70

5.4 Resilience70

5.4.1 Describing resilience 71

5.4.2 Examples of resilience .72

5.4.3 Conclusion on resilience 73

5.5 Speed of implementation .74

5.5.1 Describing speed of implementation74

5.5.2 Examples of speed of implementation .75

5.5.3 Conclusion on speed of implementation 75

5.6 Conclusion on economic viability in the sector .76

6 CONCLUDING REMARKS.77

REFERENCES 81

GLOSSARY .85

ANNEXES 89

ANNEX 1 - HUMAN TOXICITY POTENTIALS.90

ANNEX 2 - GLOBAL WARMING POTENTIALS 92

ANNEX 3 - AQUATIC TOXICITY POTENTIALS .95

ANNEX 4 - ACIDIFICATION POTENTIALS101

ANNEX 5 - EUTROPHICATION POTENTIALS 102

ANNEX 6 - OZONE DEPLETION POTENTIALS 103

ANNEX 7 - PHOTOCHEMICAL OZONE CREATION POTENTIALS.106

ANNEX 8 - EUROPEAN ENERGY MIX 110

ANNEX 9 - COUNCIL DIRECTIVE (85/337/EEC)112

ANNEX 10 - EUROPEAN PRICE INDICES.113

ANNEX 11 - FINANCIAL RATIOS 114

ANNEX 12 - EXTERNAL COSTS FOR SOME AIR POLLUTANTS. 116

ANNEX 13 - METHODOLOGIES USED IN MEMBER STATES 122

ANNEX 14 - PRINTING PRESS EXAMPLE. 124

ANNEX 15 - EXAMPLE OF NOX REDUCTION IN A MUNICIPAL WASTE INCINERATOR 146