There is an increasing awareness that new development projects can have a significant impact, positive and negative, on the environment with repercussions at both national and international levels. The Economics of Project Appraisal and the Environment illustrates the current state of knowledge on the problem of incorporating environmental effects into practical project appraisal.

Under the editorship of John Weiss, distinguished economists have prepared papers which address issues relating to project appraisal and environmental effects in developing countries.

The areas covered include data problems for project analysis, the appropriate discount rate to allow for environmental effects, the treatment of forestry projects, the carbon storage value of forests, indirect environmental effects from a large mining project in the Brazilian Amazon, the implications of global warming for project appraisal, the use of multi-criteria analysis and some of the limitations in concepts of sustainable development.

The contributors argue that although cost-benefit calculations remain an important tool, they require modification to take account of environmental effects.

Adopting no single position, the papers in this collection show the complexities of alternative approaches to environmental appraisal. Bringing together expert opinion on an important but often neglected issue, this book will be welcomed by academic and professional development economists seeking a clearer view of the environmental implications of development.