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The Globalization of Cost-Benefit Analysis in Environmental Policy$
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Michael A. Livermore and Richard L. Revesz

Print publication date: 2013

Print ISBN-13: 9780199934386

Published to Oxford Scholarship Online: May 2013

DOI: 10.1093/acprof:oso/9780199934386.001.0001

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The Shape of Distributional Analysis

The Shape of Distributional Analysis

Chapter:
(p.69) 5 The Shape of Distributional Analysis
Source:
The Globalization of Cost-Benefit Analysis in Environmental Policy
Author(s):

Michael A. Livermore

Jennifer S. Rosenberg

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199934386.003.0005

For developing and emerging countries, many of which face extremely pressing issues of poverty and inequality, the distribution of costs and benefits can have important social impacts. Appropriately accounting for distribution is therefore critical to understanding the effects of policy choices. The authors examine the role of distributional analysis as a complement to cost-benefit analysis and discuss ways in which the distribution of policy impacts could affect valuations. Surveying the options that are available to policymakers to account for distributional concerns, the authors conclude that certain types of distributional analysis are likely to lead to better decision making, but the wisdom of tailoring environmental protections to achieve redistributional goals cannot be determined in the abstract and depends heavily on a range of local factors.

Keywords:   Distribution, valuations, local factors, redistributional goals

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