EX-ANTE ANALYSIS MODEL OF THE COST-EFFECTIVENESS OF ENVIRONMENTAL POLICY REGULATIONS

The paper aims to develop a model of ex-ante cost-effectiveness analysis for regulations applied in environmental policy. The experience gained so far in applying cost-effectiveness analysis on an ex-post and ex-ante basis has been analysed. Major problems have been identified in the practical application of the ex-ante cost-effectiveness analysis in non-investment activities. On this basis, a model for the ex-ante cost-effectiveness analysis was proposed. The developed theoretical model consists of three modules: data preparation, forecasting and interpretation. The model was verified on the environmental policy regulation – greenhouse gases emissions trading system which was implemented in Poland in 2008.