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A Review of the Valuation of Environmental Costs and Benefits in World Bank Projects

Author

Listed:
  • Patricia Silva

    (World Bank)

  • Stefano Pagiola

    (World Bank)

Abstract

The World Bank’s Operational Policy on Economic Evaluation of Investment Operations requires that project evaluations include all the costs and benefits generated by the project, including environmental costs and benefits. Theis review examines the use of environmental valuation in 101 projects in the World Bank’s environmental portfolio approved in fiscal years 2000, 2001, and 2002. It has three broad objectives. First, it examines the extent to which environmental costs and benefits have been incorporated in the economic analysis of projects. Second, it examines how well valuation was used. Third, it seeks to identify areas of weakness so as to feed into plans for capacity building. The results show that the use of environmental valuation has increased substantially in the last decade. Ten years ago, one project in 162 used environmental valuation. In recent years, as many as one third of the projects in the environmental portfolio did so. While this represents a substantial improvement, there remains considerable scope for growth.

Suggested Citation

  • Patricia Silva & Stefano Pagiola, 2005. "A Review of the Valuation of Environmental Costs and Benefits in World Bank Projects," Others 0502007, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpot:0502007
    Note: Type of Document - pdf; pages: 72
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/othr/papers/0502/0502007.pdf
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    References listed on IDEAS

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    Cited by:

    1. Giles ATKINSON & Susana MOURATO, 2007. "Environmental valuation: a brief overview of options," Departmental Working Papers 2007-07, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

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    More about this item

    Keywords

    environmental economics; valuation of environmental impacts; cost-benefit analysis;
    All these keywords.

    JEL classification:

    • P - Political Economy and Comparative Economic Systems
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Z - Other Special Topics

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