THE ENVIRONMENTAL COSTS AND BENEFITS OF
THE SUPPLY OF AGGREGATES: PHASE II
1. In September 1997, DETR commissioned
London Economics to carry out research to inform the review of
the guidelines on aggregates planning in MPG6 and the Chancellor's
considerations of a tax on minerals extraction. Information was
needed on the environmental costs and benefits of the main sources
of supply of aggregates and the project was intended to provide
that information, including a valuation of external environmental
costs and benefits. (A copy of the specification for the research
2. The project had to be undertaken in limited
time and involved a novel, for the UK, application of methodology.
The results indicated that there are externalities associated
with the supply of aggregates and these were valued. The broad
methodology used is considered appropriate. However, before taking
a decision on the question of the introduction of an aggregates
tax, there is scope for further work to build on the earlier study.
This study will again focus on the valuation of the external environmental
costs and benefits of the supply of aggregates. What is wanted
is robust and defensible national estimates for primary aggregates
and for recycled aggregates using best practice valuation techniques.
3. To assist work on the project, a small
group of experts in CV methods and other relevant matters, such
as questionnaire design, will be formed by DETR and will play
a key role in advising on methodological issues, questionnaire
design and sampling strategy throughout the project.
4. BGS have been asked to identify a sampling
frame for primary sources as a separate study. The results will
be available by the start date of the present project. A sampling
frame for recycled operations will also need to be developed.
5. The aim of the project is a follows.
To value the external environmental costs and
benefits associated with the supply of aggregates for the UK construction
industry issuing Contingent Valuation surveys and building on
the first phase of this project.