EC238 Lecture Notes - Lecture 5: Keystone Pipeline, Social Discount Rate, Environmental Policy
Document Summary
In this lesson you will learn about how we can measure the potential environmental damages and abatement costs, introduced in the previous lesson, of a proposed environmental project like the keystone xl pipeline. Conducting benefit-cost analysis of the proposed keystone xl pipeline could assist the political discussions and decisions that must be made regarding this controversial project. Additionally, you will learn about some of the different types of policy analysis economists conduct including the basic steps in completing a benefit-cost analysis that can assist with the policy decision-making process surrounding projects with environmental consequences. This lesson relies heavily on the textbook and it covers a lot of material. 6 looks at a number of possible frameworks (including benefit-cost analysis or. Bca) that can be used by government policy analysts to help make decisions about environmental policy issues. Chapter 6 also highlights how discounting affects the results of bca and how controversial the choice of discount rate can be.
