Building on the structured, qualitative analysis of step 2, further in-depth analyses should be undertaken to produce a quantitative/monetaryestimate of expected benefits and costs. This can take a number of forms:
- in-depth analysis of expected impacts over time which typically requires a case study/scenario approach. This type of analysis can be implemented on its own, though in reality it is generally used in conjunction with a quantitative analysis of impacts
- quantitative estimation of impacts: the impacts are estimated using quantitative techniques, varying from simple extrapolation – based for instance on previously derived coefficients (e.g. units of CO2 per unit of industrial activity) – through statistical inference on the basis of similar impacts and occurrences elsewhere (e.g. impact assessment work in Member States and other countries) to full-fledged quantitative modelling. Essentially, the aim is to understand the extent of the impacts of the policy options and to estimate the costs and benefits in monetary form when this is feasible.
If quantification/monetisation is not feasible, explain why.