Methodologies and improvement opportunities in cost-effectiveness evaluations of emission reduction measures

Analysing cost-effectiveness of emission reduction measures is complex and various different methodologies exist

The purpose of the study carried out by Pöyry was to provide an overview of the currently available methods for assessing the cost-effectiveness of emission reduction measures in the so called effort-sharing sector. It was found that there is a variety of different methodologies that can be used to analyze the cost-effectiveness of emissions reduction measures. The methods also vary significantly between different countries, research papers and sectors. Each method has its own benefits and limitations, therefore there is no one correct method to evaluate the cost-effectiveness of an emission reduction measure. Often calculation assumptions are not described in sufficient detail, which makes it more difficult to compare different analysis results and to develop the analysis methodologies further. Having more transparency around methodologies and assumptions would enable a wider discussion and would help in developing the different methods further. In addition, Finland should make the analysis of the emission reduction measures and political mechanisms more systematic. Moreover, success of the applied measures and mechanisms should be followed-up systematically both with regards to realized emissions reductions and realized cost-effectiveness.

• Päästövähennystoimenpiteiden kustannustehokkuusarvioinnin menetelmät ja kehityskohteet

  (28.11.2019)