ABSTRACT

This chapter explores the robustness of other assumptions used in the analysis, employing methods of uncertainty and sensitivity analysis. It identifies the main sources of uncertainty in the accounting assessment. The chapter review the main methodologies available in uncertainty and sensitivity analysis. These methods are then used to carry out a series of analyses. The first of these analyses explores the importance of system interactions for non-separable projects. The chapter also examines the sensitivity of critical variables to different economic accounting assumptions. It then explores the impact of the practice of discounting emissions on the values of the critical variables. The chapter carries out a comparison between values of the critical variables based on feasibility data and those based on monitored data and undertakes a series of analyses to determine the relative importance of different sources and combinations of uncertainty.