Case Study: Research Policy Interface Thematic Group

Public Expenditure Infrastructure Guidelines

Department of Public Expenditure NDP Delivery and Reform, 2024. Infrastructure Guidelines Supplementary Guidance: Measuring & Valuing Changes in Greenhouse Gas Emissions in Economic Appraisal

Academics and Institutional Affiliation:

Hannah Daly

Sustainability Institute, University College Cork

Evidence of policy outcome referencing the role of the research:

Yes. The value for carbon in public investment appraisal now uses outputs from the TIMES-Ireland Model. “Modelling to calculate the marginal abatement cost associated with the agreed sectoral emissions ceilings was undertaken by UCC MaREI using the TIMES Ireland Model (TIM), which is an optimisation model of the Irish energy system” https://assets.gov.ie/static/documents/revising-the-shadow-price-of-carbon-used-in-public-sector-economic-appraisal.pdf

Research undertaken that informed or underpinned the policy outcome:

Modelling of Ireland’s energy system under legal carbon budgets was undertaken using the TIMES-Ireland Model https://gmd.copernicus.org/articles/15/4991/2022/

Key learnings for you from this research-policy bridging process:

Following the conclusion of the modelling, engagement with Department official raised a number of key policy questions regarding the most appropriate way to translate the modelled marginal abatement costs into a practical shadow price of carbon for use in public economic appraisal.

1. One Value vs Separate ETS and Non-ETS Values

2. Post-2050 Shadow Price of Carbon

Applying the proposed approach to the policy questions outlined above to the modelling outputs provided by UCC, a schedule of shadow price of carbon values was derived.

SDGs impacted:

SDG 3, SDG 11, SDG 12 & SDG 13