Additionality

From Wikipedia, the free encyclopedia
Jump to: navigation, search

Additionality is a notional measurement of an intervention (i.e., doing something), when the intervention is compared to a baseline, status quo metric (i.e., doing nothing). The 'intervention' can be based on either technology or economics. For an example of a technology based intervention, see the use of the word when discussing carbon credits.

Economic additionality is a relatively new concept, and a working definition of the term is shown below:[1]

Economic definition[edit]

Net positive difference that results from economic development intervention. The extent to which an activity (and associated outputs, outcomes and impacts) is larger in scale, at a higher quality, takes place quicker, takes place at a different location, or takes place at all as a result of intervention. Additionality measures the net result, taking account of deadweight, leakage, displacement, substitution and economic multipliers.[2]

Additionality is calculated by the following formula:[3]

A = IinIrc

where A is the additionality, Iin is the impact of the intervention, and Irc is the impact of a reference case.

See also[edit]

References[edit]