Monetary valuation

In 2006 we developed our first life cycle impact assessment method with option for full monetarisation of all impact categories. Now we are updating it and offer everyone to join the further developments the field of monetary valuation in our Monetarisation Club.

The client

Crowdfunded project

Our role

The Monetarisation Club is 2.-0 LCA consultants way to share our internal knowledge and the further development of practical monetary valuation methods and tools for Life Cycle Assessment.

More about monetary valuation

Through the Monetarisation Club members keep up-to-date with the way monetary valuation is currently used in:

  • Policy debates,
  • Policy preparation, e.g. for environmental taxation
  • Environmental assessment tools, e.g. Environmental Profit & Loss accounts and LCA

In the Monetarisation Club members follow and discuss – and maybe influence – the work on the coming ISO 14008 on “Monetary valuation of environmental impacts from specific emissions and use of natural resources” and the coming ISO 14007 on “Determining environmental costs and benefits”.

In the Monetarisation Club members take part in discussions via interactive webinars on e.g.:

  • What is the social cost of carbon and why is it different from the market price of carbon quotas?
  • Is there – and should there be – a difference between Cost-Benefit Analysis and monetarised LCA and Life Cycle Costing?
  • Beyond ISO 14008: Monetary valuation of social impacts and human resources
  • What will ISO 14007 mean for LCA, Natural Capital Accounting, and sustainability assessment?
  • What is the difference between the monetary valuation approaches in the EPS and Stepwise LCIA methods, and what does that imply?
  • The human capital approach: Ethical problems in valuing human lives and how they can be overcome
  • Discounting: An emerging consensus on rationale, procedures and data?
  • Quantifying resource rents and their importance for current and future welfare.
  • Scenarios of impacts and adaptation: What is – and should – their role be in monetary valuation?
  • Severity, incidence and duration in summary indicators: DALYs, QALYs, PALYs, BAHYs – what do they have in common and what is different?
  • Actual, revealed and stated preferences: How can we reduce uncertainty in monetary valuation?
  • Valuing nature: Disentangling ecosystem services, local amenity values and global existence values
  • Valuing nature: What is natural? The intertwined value of natural and man-made ecosystems and heritage.
  • Valuing nature: Do all species have an equal right to exist? What is it really that we want to protect in nature?
  • Capital, resources, wealth: Conceptual similarities in valuing human, biotic and abiotic resources
  • Cultural bias and cultural imperialism in valuation. Where does universal values stop and respect for local culture begin?
  • Finding optimal levels of environmental impact: Where damage costs meet abatement costs

Through the Monetarisation Club members follow and support the development and improvement of monetary valuations of specific environmental goods / impacts, e.g.:

  • Relevant time horizons for valuing the impacts of greenhouse gas emissions and carbon storage – and the relevance of GTP versus GWP
  • Nature conservation: The value of postponing impacts
  • Ozone layer depletion: Shifting the focus to N2O and other non-Montreal gases
  • Animal welfare: A market price approach
  • The social value of resource depletion: Estimating the differential between private and social rents
  • Weighting aquatic versus terrestrial ecosystems

Monetarisation Club members receive introductions to the improvements in the Stepwise LCIA method and hot-line support for its implementation in their LCA software.

Through the Monetarisation Club members follow and initiate methodological research on e.g.:

  • Improving the empirical basis for discounting and equity-weighting
  • Improving choice modelling methods for valuation of the intrinsic value of nature
  • Closing the gaps: Ensuring completeness of the descriptions of sources and sinks for impact pathways
  • Closing the gaps: Parallel modelling of impacts on humans and ecosystems

Have a look at the Monetarisation Club here.