The indirect costs and benefits of greenhouse gas limitations: Mauritius case study

There has been a considerable amount of work carried out on the appraisal of different projects and programmes that reduce greenhouse gases (GHGs). These studies have focused on the development of appropriate methodologies for estimating of the costs of GHG limitation, and measuring the amount of GHGs abated.

These are two of the central issues that need to be considered prior to finalising a policy for GHG mitigation, and ideally one would pursue those policy measures that effectively reduce GHGs at least cost. Although the cost (when correctly measured) should have a strong bearing on which policies to select, it is not the only consideration.

Other factors will influence the decision, such as the impacts of the policies on different social groups in society, particularly on vulnerable groups, the benefits of the GHG limitation in other spheres (e.g. reduced air pollution), and the impacts of the policies on broader concern such as sustainability.

In developing countries these other factors are even more important than they are in the industrialised countries. GHG limitation does not have as high a priority relative to other goals; such as poverty alleviation, reductions in employment, etc. as it does in the wealthier countries. Indeed, one can argue that the major focus of policy will be development, poverty alleviation etc. and that GHG limitation will be an addendum to a programme designed to meet those needs.

Taking account of the GHG component may change the detailed design of a policy or programme, rather than being the main issue that determines the policy. In recognition of the importance of these broader social and environmental issues in developing countries, a methodology has been developed which provides a framework for the assessment of the wider impacts arising from GHG limitation projects, and advice on how to incorporate them into the decision-making framework.