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Beyond the Policy Debate: How to Quantify Sustainability Benefits in Competition Cases journal article

Lessons Learned From Environmental Economics

Adina Claici, Jasper Lutz

European Competition and Regulatory Law Review, Volume 5 (2021), Issue 3, Page 200 - 209

The competition community is currently busy discussing the role of competition policy in supporting the Green Deal and other EU sustainability objectives. In this paper, we look beyond the policy debate and focus on the application of economic methodologies in quantifying sustainability benefits potentially stemming from an agreement, a merger, or state aid. We zoom in on the current rules to identify the boundaries of what could be the basis for incorporating sustainability in such cases before presenting well-established tools and methodologies from environmental economics that can be used in the quantification of sustainability. As with any quantitative assessment, there is a trade-off between accuracy and cost, and the methodological choices should be based on the circumstances of each case. Keywords: sustainability benefits, competition policy, economic analysis

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