Incorporating GHG Emission Costs in the Economic Appraisal of Projects Supported by State Development Agencies

This paper sets out a methodology for updating an economic appraisal model to ensure that it takes appropriate account of costs arising from greenhouse gas emissions. While the analysis is based on the appraisal model used in Ireland, it should be broadly applicable to circumstances in any EU Member State; indeed, many features will be relevant in any jurisdiction subject to a carbon tax or participating in a carbon permit trading system.