The Full Cost Calculator has been constructed to determine and communicate the full costs and benefits of various Environmental Pressure reduction scenarios and further offer Policy Instrument suggestions – e.g. emissions standards, taxes and or cap & trade mechanisms. Full Cost refers to both the Internal and External Costs and Benefits.

Internal costs and benefits describe the goods and services that undergo market allocation, price association and subsequently feature in accounting, reporting and decision-making frameworks. External costs and benefits describe the goods and services, which escape market allocation, price association and the decision-making process altogether.

Many of today’s environmental problems, including climate change, represent the external costs of economic growth, the unaccounted for use (rent) and overuse (damage) of nature’s goods & services. Introducing external costs & benefits into the policy design process places the environment on an equal assessment and evaluation footing, providing a more complete and therefore robust understanding of economic performance. This is the function of the Full Cost Calculator.