About the project

Quantifying socio-economic benefits can complement business-related aspects in decision-making. Examples of relevant decision-making situations are public procurement and long-term strategic investments. In socio-economic analyses, quantifying the economic value of available measures makes it possible to compare them, based on what would constitute advantages or disadvantages in different systems. If methods lack for quantifying certain benefits, there is a risk that the correct value of a certain benefit is not added to an overall assessment.

Even if there are standardized and/or established methods to determine some socio-economic benefits, research has exposed knowledge gaps. Previous studies have shown that specific parameters infer a benefit, but, at the same time, they have failed to quantify the benefit due to lack of applicable methods. Quantification would enable more detailed input for decision makers in business and society prior to investment decisions, strategic planning and policy.

When it comes to transportation fuels, two benefits have proven to be particularly interesting and with potential to largely impact the total quantified benefits of transportation fuels: security of supply and circularity for renewable fuels. Security of supply of different energy carriers is critical for society and in terms of Swedish security policy. Circularity is regarded to be a cornerstone for sustainable developent, both by Sweden and the international community.

The project will develop new methodology for quantifying socio-economic benefits of security of supply and circularity for renewable fuels. Methodology for quantifying security of supply is developed based on the combination of two factors: event cost mitigation and reduced inventory cost. For quantification of circularity, methodology is developed based on the combination of  linked life cycles and socio-economic cost of alternative method. The developted methodology will be applied to three selected value chains for renewable fuels in a Swedish context.

Facts

Manager
Desirée Grahn, IVL Swedish Environmental Research Institute

Contact
desiree.grahn@ivl.se

Participants
Anton Fagerström and Tomas Lönnqvist, IVL

Time plan
15 June 2020 - 29 oktober 2021

Total project cost
1 623 002 SEK

Funding
Swedish Energy Agency, the f3 partners organisations, Biofuel Region, Biogas Öst, E.on, Energigas Sverige, IVL, Lantmännen and Stockholm Public Transport (SL).

Swedish Energy Agency's project number within the collaborative research program
50396-1

The project has a focus group with members from industry and sectors that could be direct users of the results: Lantmännen, Stockholm Public Transport, Energigas Sverige, Biogas Öst, E.on, Biofuel Region and Region Gotland.