Cost Calculations

The document describes the cost-benefit calculation capabilities of LEAP, detailing the types of costs it can track, the importance of defining system boundaries to avoid double counting, and the use of real and discounted currency units to determine Net Present Value (NPV) between scenarios.

• LEAP calculates societal cost-benefit by aggregating various energy system costs, including demand costs, transformation capital and operating costs, fuel costs (indigenous, imported, or exported), pollutant emission externalities, and costs of unmet requirements.
• To prevent double counting, users must establish a consistent system boundary. While the default boundary covers the complete energy system, users can specify smaller boundaries to exclude specific modules, such as refining, and instead use 'Delivered Costs' for fuel products.
• All cost calculations in LEAP are conducted in real (constant) currency units, though results can be displayed in discounted units based on a specified discount rate. The Net Present Value (NPV) is calculated as the sum of all discounted costs and benefits of one scenario minus another across the study period.

APA

Stockholm Environment Institute (n.d.). Cost Calculations. https://cdn.leap.sei.org/Help24/Concepts/Transformation_Cost_Calculations.htm

Chicago

Stockholm Environment Institute. Cost Calculations. n.d. https://cdn.leap.sei.org/Help24/Concepts/Transformation_Cost_Calculations.htm.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Cost Calculations |url=https://cdn.leap.sei.org/Help24/Concepts/Transformation_Cost_Calculations.htm |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitutendcost, author = {{Stockholm Environment Institute}}, title = {{Cost Calculations}}, institution = {Stockholm Environment Institute}, url = {https://cdn.leap.sei.org/Help24/Concepts/Transformation_Cost_Calculations.htm}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }