Economic data
Environment
General Guidance
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Accounting for environmental impacts in policy appraisal (PDF 451KB)
This supplementary guidance covers the practical application of techniques for valuing environmental impacts in policy appraisal. It applies to all programmes, policies and projects – not just those policies with a specific environmental focus. An important recommendation in this guidance is the use of the ecosystem services framework. Using this framework ensures that the full range of environmental impacts from a proposed policy or project is included in policy appraisal. The guidance includes a practical step by step guide to valuing environmental impacts in policy appraisal as well as links to resources that will provide further support in accounting for environmental impacts.
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Introductory Guide to the Valuation of Ecosystem Services (PDF, European Commission website, opens in new window)
Ecosystem services are services provided by the natural environment that benefit people. This includes provision of food and fuel, the natural regulation of harmful chemicals in the atmosphere, as well as recreational benefits. This guidance provides a broad set of steps which can be applied in any policy appraisal context to assess the change in the value of ecosystem services provided, as well as a more specific checklist of ecosystem services, and an outline of different approaches to valuation. A case study looks at the appraisal of a Flood and Coastal Erosion Risk Management (FCERM) scheme.
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Environmental Valuation Reference Inventory (EVRI) (EVRI website, opens in new window)
The Environmental Valuation Reference Inventory (EVRI) is a searchable storehouse of empirical studies on the economic value of environmental benefits and human health impacts. It has been developed by Environment Canada, a department of the Government of Canada, and is available on subscription.
Climate Change
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Accounting for the Effects of Climate Change (PDF, DEFRA website, opens in new window)
It is particularly important to consider the risks and effects of climate change if a programme, policy or project: has elements affected by the weather; has a long-term lifetime; involves significant investment or has high value at stake; provides or supports critical national infrastructure; involves decisions with significant irreversible impacts; has significant interdependencies with other government activities or the wider economy; or addresses contingency planning or business continuity needs.
A risk assessment must be conducted to detailing the vulnerability and adaptive capacity of the activity - this guidance offers tools for climate change risk assessment. 'Adaptation' options which reduce these risks or take advantage of opportunities will then need to be identified, and real options analysis is offered as a options appraisal framework, able to incorporate the uncertainty of climate change and the value of flexibility into decision making. The Thames Estuary 2100 is offered as a case study.
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Summary and Issues Filter (PDF, DEFRA website, opens in new window)
A one page summary of the key issues presented in the full guidance on ‘Accounting for the Effects of Climate Change’.
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DEFRA website (opens in new window)
Link to the climate change section of the DEFRA website.
Energy Use and Greenhouse Gas Emissions
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Energy Use and Greenhouse Gas Emissions (DECC website, opens in new window)
Guidance for assessing proposals which lead to an increase or reduction in energy use and greenhouse gas emissions. Covers all proposals which have a direct impact on energy use, as well as those which have an indirect impact through planning, construction, land use change or the introduction of new products that use energy. Changes in energy use translate into changes in greenhouse gas emissions and changes in energy supply - values for the former are arrived at by converting all emissions into tonnes of carbon dioxide equivalent and then valuing them using the carbon valuation methodology, and values for the latter are arrived at using estimates of the long-run variable costs of supplying energy to the sector of interest.
There is an accompanying spreadsheet 'toolkit', which automatically performs all of the calculations required for most proposals up to the year 2010. The guidance also outlines the reporting arrangements for compliance with carbon budgets - legally binding 5 year targets for the UK's greenhouse gas emissions, set out in The Climate Change Act (2008). The emissions figures reported in appraisals must be in line with carbon budget accounting and reporting requirements to enable the monitoring of progress towards these.
Floods and Coastal Erosion
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Floods and Coastal Erosion (DEFRA website, opens in new window)
Link to the Floods and Coastal Erosion section of the DEFRA website. This contains DEFRA's policy statement on Appraisal of Flood and Coastal Erosion Risk Management, which sets out the principles that should guide decision making on the sustainable management of flood and coastal erosion risk in England, and also contains detailed practical guidance on conducting appraisals in accordance with the policy statement.
Sustainable Development
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Sustainable Development Impact Test (BIS website, opens in new window)
Sustainable Development is about ensuring that the current generation satisfies its basic needs and enjoys an improving quality of life without compromising the position of future generations. Because sustainability cannot be appraised by cost-benefit analysis alone, DEFRA's Sustainable Development Impact Test is designed to supplement the cost-benefit assessment to determine whether there are compelling sustainability-related reasons to amend the policy. The Sustainable Development Impact Test is a mandatory part of completing an Impact Assessment, but the guidance can be usefully applied to other types of intervention.
See also Impact Assessments (Wider Environmental Specific Impact Test, Greenhouse Gas Specific Impact Test and Sustainable Development Specific Impact Test); Discounting.
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