Methodological Notes for Cost and Benefit Analysis of Drilling in Eastern Mediterranean

Abstract

The Mediterranean Action Plan of the United Nations is legally the only set of binding policies to address common issues and challenges of environmental degradation and the protection of marine and coastal ecosystems in the Mediterranean. The oil and gas industry is at the heart of the global economy and crucial for many national economies, including developing and emerging countries, being a driving force for economic growth. Cost Benefit Analysis (CBA), known also as Social Cost Benefit Analysis, is a method of evaluating investment plans and their impact with a view to socioeconomic well-being and the environment. In order to be able to answer the question whether or not research and subsequent mining of hydrocarbons should be done in the Eastern Mediterranean, one should consider all of the above, affecting political answers, especially as climate change is more visible than ever and the potential costs of these activities are difficult to assess