%0 Journal Article
%@ 2160-6552
%A Flachenecker, F
%A Bleischwitz, R
%A Rentschler, JE
%D 2016
%F discovery:1530925
%J Journal of Environmental Economics and Policy
%K Competitiveness, cost–benefit analysis, investments, material efficiency
%N 2
%P 107-120
%T Investments in material efficiency: the introduction and application of a comprehensive cost–benefit framework
%U https://discovery.ucl.ac.uk/id/eprint/1530925/
%V 6
%X Increasing material efficiency is considered to yield multiple economic and environmental benefits. This paper firstly introduces a comprehensive cost–benefit framework to systematically assess the viability of investments in material efficiency. The framework comprises several components by (1) comparing a business-as-usual scenario with a scenario of scaling up investments in material efficiency, (2) covering economic and environmental dimensions, and (3) considering direct and indirect effects. In a second step, we match the framework to existing evidence from the literature, followed by an application of the framework to a microeconomic investment project financed by a multilateral development bank. Our results suggest that material efficiency investments can yield positive net benefits, which typically increase when non-monetary dimensions are additionally taken into account. Overall, our analysis calls for a more comprehensive approach towards material efficiency investment appraisals, the internalisation of externalities, and further empirical research to better understand the implications of moving towards material efficient economies.
%Z This is an Accepted Manuscript of an article published by Taylor & Francis in the Journal of Environmental Economics and Policy on 27 July 2016, available online: http://www.tandfonline.com/10.1080/21606544.2016.1211557.