Environmental Economics

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Our Work

Our work on the benefits and costs of environmental policies and measures covers a wide range of areas including biodiversity, water quality, waste management, air pollution and climate change in several Member States.

IEEP has extensive experience of the development of methodologies for the assessment of the benefits of improved environmental policy in both EU and other countries. We have led and collaborated on several benefits studies for former Acceding and Candidate Countries (including Croatia and South East European Countries) and neighbourhood countries.

Some of our key work includes the following:

In 2006-07 we were responsible for the study Benefits for environmental improvements in the European Neighbourhood Policy (ENP) countries. This project for DG Environment led to the elaboration of a methodology for the assessment of environmental benefits related to air and water quality, waste management and nature protection. The report was complemented by a scoping study on the Ukraine.

In 2007-08 IEEP collaborated with several partners in to a European study on the Cost of Policy Inaction (COPI): The case of not meeting the 2010 biodiversity target. This study for DG Environment provided an inventory of the economic valuations of biodiversity, linked to changes in land cover and land use, to analyse the cost to terrestrial ecosystems of not halting biodiversity loss. This was an important input to TEEB process.

In 2008-09 we carried out the study Further Developing Assumptions on Monetary Valuation of Biodiversity: Cost of Policy Inaction (COPI II). This study, commissioned by DG Environment, aimed to further develop the monetary figures used in the 2007-08 COPI study and to better explore the issue of substitutability of capital also fed into TEEB.

Our ongoing work includes:

The study Analysis for European Neighbourhood Policy Instrument (ENPI) Countries. This study for DG AIDCO will provide an assessment of the social and economic benefits of environmental improvements in the 16 European Neighbourhood Policy (ENP) countries and in the Russian Federation.

The DG Environment study Taking into Account Opportunity Costs when Assessing Costs of Biodiversity and Ecosystem Action. This work aims to estimate the costs of biodiversity actions in the EU, with special consideration of opportunity costs, for which there is currently only limited coverage in existing literature.

More about our work in this area...

Latest in Benefits & Costs Studies

Natural capital in a Nordic context

A report for the Nordic Council of Ministers reviewing five different approaches to natural capital accounting and exploring their links with biodiversity and ecosystems.
Webinar: Incorporating biodiversity into national strategies and action plans

IEEP has just produced a roadmap and guidance document to help practitioners to incorporate biodiversity and ecosystem values into their NBSAPs. See case study examples and tune into the webinars on June 5 and 7.
Nature and its role in the transition to a Green Economy

This new IEEP-authored report highlighting the importance of nature to the economy aims to clarify and help mainstream nature’s role in the transition to a green economy in the context of sustainable development and poverty eradication.
Systemic approach to adaptation to climate change and renewable energy harnessing (Biomass and Mini-hydro)

Biochar has the potential to both mitigate greenhouse gases, and to act as an adaptation measure in terms of responding to the impacts of climate change. Based on its compatibility with the appropriate soil properties, it could increase the resilience of soil to erosion.
Estimating the Overall Economic Value of the Benefits provided by the Natura 2000 Network

Estimated benefits provided to EU citizens from the EU’s Natura 2000 Network could be in the range of €200 to €300 billion a year.
Benefit Assessment Manual for Policy Makers: Assessment of Social and Economic Benefits of Enhanced Environmental Protection in the ENPI countries

This benefit Assessment Manual, originally for internal use, has been turned into a Benefit Assessment Manual for policy makers and experts for wider dissemination and provides an understanding of the methodologies applied for the country benefit assessments.
Analysis for European Neighbourhood Policy (ENP) Countries and the Russian Federation on social and economic benefits of enhanced environmental protection – Egypt Country Report

There are considerable benefits from taking immediate action to address the environmental problems facing Egypt, including in the area of air pollution, water quality and infrastructures and waste management, and safeguarding its natural heritage.
Regional Synthesis Report: ENPI South - Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, occupied Palestinian territory, Syria and Tunisia

Investing in improving environmental standards in the ENPI South countries would offer huge benefits in terms of cost savings, improved security (food, water, energy and climate), and improved quality of life.
Regional Synthesis Report: ENPI East – Synthesis report on: Armenia, Azerbaijan, Belarus, Georgia, Moldova, Russian Federation and Ukraine

Investing in improving environmental standards in the ENPI East countries would offer huge benefits in terms of cost savings, improved security (food, water, energy and climate), and improved quality of life.
Green Infrastructure Implementation and Efficiency

This IEEP-led study for the European Commission (DG ENV) improves the knowledge base on green infrastructure policy initiatives in Europe and assesses their implementation and efficiency. It also formulates policy recommendations for integrating green infrastructure into the EU policy framework.
The benefits associated with Sites of Special Scientific Interest in England and Wales

A report on the benefits provided to society by Sites of Special Scientific Interest (SSSIs) in England and Wales was just published. The study, led by GHK with support from others including IEEP, examines the range of ecosystem services provided by the network of SSSIs and estimates the monetary value of protecting them.
Valuing and Conserving Ecosystem Services: a Scoping Case Study in the Danube Basin

The report for WWF provides an assessment of the value and status of some key ecosystem services in the Danube Basin, and some policy instruments to support them.
TEEB for National and International Policy Makers 2009

TEEB for Policy Makers is a report for national and international policy makers on The Economics of Ecosystems and Biodiversity. It looks at the global biodiversity crisis, the ecological, economic and ...
Environmental administration in the former Yugoslav Republic of Macedonia and benefits assessment for fYRoM and other countries of South Eastern Europe - Task 2

This study explored and estimated the environmental, economic and social benefits that are likely to arise from the full implementation of the EU environmental legislation (the 'acquis Communautaire') ...
The Polluter Pays Principle and Fisheries: The Role of Taxes and Charges

Written to help inform the debate to the Common Fisheries Policy Review English Nature (EN) and the Institute for European Environmental Policy (IEEP) published a series of five short briefings.