Abstract
This article focuses on the two important factors that contribute to differences in the estimated external costs. We report a sensitivity analysis of the external cost estimates based on alternative specification for emissions factors specified in different databases (MEFA and TREMOVE), and monetary values for human health damage.
To illustrate the importance of data quality and robustness of assumptions made, the calculations of external costs for different road transport vehicles and fuels are based on an identical concept of air dispersion modelling and linearity of dose-response functions. Although the methodology is identical, except the data on emission factors and monetary values of human health impacts and CO2 damage, the estimated external costs differ by two to five orders of magnitude depending on specific technology and region.