Environmental Economics

The Danish Environmental Protection Agency (EPA) is not only about pollution and nature. The law, the economy and cross-cutting strategies must be incorporated when a new environmental initiative is born in Denmark or the EU.

Only by looking at the environment from many angles do we achieve sustainable results, which increase protection of humans, the environment and nature.

Environment and economy
The Danish EPA has "put a price on the environment" since 2000. This appears from a recently published report from the Nordic Council of Ministers.

Download the Use of Economic Instruments in Nordic Environmental Policy 2006–2000 (PDF, 680KB)

The background for this report is the significant financial resources that society is spending on safeguarding environmental benefits, such as clean air and clean groundwater. Using environmental economic tools we gain insight into what these efforts cost, what we get for the money we invest and what the cost is if we do nothing.

The costs of taking action or doing nothing
What is the cost for society in terms of illness and falling house prices from traffic noise? What are the costs of abating noise nuisance, e.g. by installing noise screens? What is less noise in the garden worth to people? What are the costs if we refrain from taking action?

It is particularly difficult to put a price on the pros and cons of environmental efforts because, as a rule, environmental benefits are not traded goods. You do not pay for them directly, and therefore they do not have an actual or specific price. Environmental economics are also a tool to illustrate how we can meet environmental targets most cost-effectively. The environmental economists in the Danish EPA record the financial consequences of environmental initiatives for society so that, in this way, politicians will have an improved basis for decision-making.

The Ministry of the Environment has published guidelines on socio-economic assessment of projects. Several reports have been published by the Danish EPA on how the method has been used in a range of policies.

Download the guidelines on socio-economic assessment of projects (in Danish) (PDF, 6,94MB)

Go to an overview of selected reports on environmental economics

The environmental economist group
The Ministry of the Environment's environmental economists group is located in the Danish EPA. The group is responsible for undertaking environmental economic analyses in close cooperation with the professionals in the Ministry.

If you would like more information on their work, .