Contents of the guide, Samfundsøkonomiske omkostningsvurderinger ved anvendelsesreguleringer på kemikalieområdet, Miljøstyrelsen

Samfundsøkonomiske omkostningsvurderinger ved anvendelsesreguleringer på kemikalieområdet

Contents of the guide

The guide itself and the associated background note have been structured along a similar outline. A short description of the seven chapters is provided below. The chapter headings are:

Introduction
Purpose and method of the cost assessment
Basis for the calculations
Types of effects
Establishment of prices and costs to apply
The cost assessment
Analysis of the uncertainties involved

Introduction. A short and brief description of the background and purpose of the work is provided in the introduction. This includes also an overview of the types of analyses that are typically conducted prior to, or simultaneously with, the cost assessment (mass-flow analysis, substitution analysis, risk assessment and interventions analysis).

Purpose and method of the cost assessment. Chapter 2 provides general considerations relating to the cost assessment. The chapter identifies and explains the typically basis and background for the cost assessments, and the possible methods to apply and to conduct an economic assessment.

Basis for calculations. Chapter 3 explains the setting of the basis for the calculations. This includes a definition of the situation prior to the intervention (the basis-scenario) and of the possible situation after the intervention has been implemented (the alternative scenario). Furthermore, the chapter provides a discussion on the setting of the time horizon for the analysis.

Types of effects. Chapter 4 describes the different types of cost elements that should in principle be included in an economic assessment. This includes three main groups: (1) the effects for the suppliers (of the chemical substance and of its alternatives), (2) the users of the chemical substance, and (3) the public sector. The chapter identifies and describes the types of effects that will typically occur and the cases where the types are of particular relevance.

Establishment of prices and costs to apply. While chapter 4 is concerned mainly with the physical calculation of effects from the intervention, chapter 5 focuses on the valuation of these effects. The chapter thus includes a discussion on the types of prices to be used and provides instructions for the possible discounting of the costs including the discount rate to apply.

The cost assessment. Chapter 6 provides the final survey of the elements that are contained in a full economic cost assessment. A survey table is a core part of this chapter.

Analysis of the uncertainties involved. Chapter 7 explains very briefly how to conduct sensitivity assessments of the uncertain elements that are inherent in the analysis.