Skip Ribbon Commands
Skip to main content
Morrison Hershfield > Solutions
Estimating the Welfare Costs of Reducing Greenhouse Gas Emissions
Estimating the Welfare Costs of Reducing Greenhouse Gas Emissions
This study was initiated by Transport Canada to examine the various welfare effects associated with measures to reduce greenhouse gas (GHG) emissions in the transportation sector.  The work builds on previous research undertaken for Canada’s National Climate Change Process, which resulted in the identification of a number of policy initiatives to help Canada achieve significant GHG reduction targets as set out in the Kyoto Environmental Accord.

The measures range in scope from transit improvements to intelligent transportation systems.  They target both freight and passenger travel.  This study undertaken for Transport Canada examines the effect of approximately 40 of the most promising measures on the economic welfare of Canadians.

Morrison Hershfield identified and computed the various welfare effects associated with measures to reduce greenhouse gas emissions in the transportation sector.  The effects examined include travel time and safety, as well as capital, operating, and maintenance costs.

Key tasks undertaken include:

  • Development of the “footprint” of the assigned GHG reduction measures
  • Identification of the relevant welfare effects associated with each initiative
  • Calculation of costs and benefits based on a thorough review of the literature
  • Resolution of discrepancies in the original measure analysis
  • Documentation of key assumptions and development of user-friendly spreadsheets for conducting sensitivity analysis on key input parameters

The assessment that was conducted by Morrison Hershfield affords a more comprehensive accounting of costs and benefits than had previously been undertaken at the national level.  As such, the assessment provides a sound, inclusive basis for decision-making.

Estimating the Welfare Costs of Reducing Greenhouse Gas Emissions Morrison Hershfield

Consumer surplus change due to transportation improvements

Sign In