Clean development mechanism CDM CDM is one of

Clean development mechanism (CDM) • CDM is one of the flexible mechanisms in the Kyoto protocol. • Investors can finance projects in developing countries without emission targets and be credited for the reduction of the emissions (tradeable permits). • Greenhouse gas (GHG) emissions form the transport sector will more than double the next 20 years in developing countries. • CDM projects in the Transport sector will tend to be relatively economic efficient – Lower GHG emissions gives reduced local air pollution (health benefits).

CDM: Project types • Fuel switch and technical improvements: – the emissions are quite easy to forecast. – they tend to have small emission savings, which gives high transaction costs • Projects that changes the modal split: – They are likely to be profitable only if they are quite large, or combined in packages. – Large infrastructure projects often carry large risks connected to costs and forecasts.

Paper 4: Alternative (or complementary) methods to CBA for impact assessment of transport infrastructure Outline: • A reminder on public project selection • Introduction to alternative and complementary methods to Cost-Benefit Analysis (CBA) • Cost-Effectiveness analysis (CEA) • Planning Balance Sheet (PBS) • Multi-Criteria Analysis (MCA)

Multi Criteria Analysis (MCA)

Paper 3: EIA in the road sector: • • Introduction Some key figures of Norwegian road infrastructure The role of Impact Assessment (IA) in road planning The Norwegian framework for Impact Assessment – An introduction – Range of impacts included in the IA – Valuation of impacts – Monetary values used – Criteria for socioeconomic profitability – Sensitivity analysis – Concluding remarks

Impacts of road projects IMPACTS Measured in monetary units Described impacts Construction costs Maintenance/operating Vehicle operating costs Travel time Accidents Noise nuisance Local air pollution Land use Pollution Perceived barrier and risk Ecological effects Visual intrusion Disruption impacts Landscape Wildlife Net Present Value Benefit-cost ratio The importance of change in these impacts are described by using a gliding scale comprising plusses (++) and Minuses (--). The scale is in nine intervals ranging from very negative (----) to very positive (++++).

Paper 2 (continued), application: New/expanded terminal building at Stavanger airport, Sola (SVG) • The terminal building is the limiting growth factor • Traffic is transferred to less attractive slots, later on to other transport modes, while traffic with less WTP is deterred from travelling. • Main benefits of a new terminal building: Travel time savings of avoiding transport to neighbouring airports/avoided deterrence.

New terminal at Sola (SVG), economic impacts and financial cash flows