Abstract

The paper presents the results of an ancillary benefits study in Russia, including the health benefits of reducing conventional pollutants as well as the economic benefits of saving fuel achieved by controlling greenhouse gas emissions. We present illustrative examples of the ancillary benefits in the forestry sector. Our findings show that the benefits from conventional pollution reduction and savings in fuel are significant and institutional reforms are needed to capture them. The “aggregated” approach, using a crosscountry macroeconomic model, contains some uncertainties, but the assumptions required for our analysis did not compromise this study, which is the first of its kind for Russia.

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