Select Committee on Northern Ireland Affairs Appendices to the Minutes of Evidence


PHASE 2

THE ENVIRONMENTAL COSTS AND BENEFITS OF THE SUPPLY OF AGGREGATES: PHASE II

INTRODUCTION

  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 is attached.)

  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.

AIMS AND OBJECTIVES

Aim

  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.


 
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