ABSTRACT

This chapter discusses the use of benefit estimation in environmental decision-making in Norway. The discussion is based on a review of the legislative basis and the administrative guidelines for cost-benefit analysis (CBA), a review of all Norwegian empirical benefit estimation studies and a more detailed analysis of what role some of these studies have played in the decision-making process. Locally Adapted Regulatory Impact Analysis (LARIA) is a regulatory impact analysis, where benefits of different measures towards local pollution problems are valued according to a set of weights based mainly on previous benefit estimation studies. The pollution control institutions of the environmental authorities have initiated much of the work on environmental benefit estimation in Norway. An increased number of Norwegian benefit estimation studies will, however, be necessary to increase the reliability of the LARIA as a decision-making tool.