|Title||Exploration of different metrics for policy evaluation|
|Keywords||climate policy, climate change, policy evaluation, market impacts, non-market impacts, ecological footprints, human health|
Global environmental policies involve parties from significantly different socio-economic and environmental conditions. The distributional aspects of policy costs and benefits are critical to the identification of mutually acceptable policies. In this research we are developing four different aggregation metrics for costs and benefits of collective action:
We expect the impacts of policy, the level of climate change, and sensitivity to these changes to vary by region. In a cost-benefit framework we hope to aggregate outcomes across the regions to identify collective policies that can offer mutual benefits (assuming a willingness to redistribute resources between the winners and losers afterwards). I will show that the choice and design of the mutually desirable policy is extremely sensitive to the assumed metric of aggregation.