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This briefing paper argues that conventional financial analysis for transport infrastructure is inadequate because it fails to integrate externalities—the costs or benefits impacting third parties. The author contends that neglecting these factors leads to continued investment in carbon-intensive road transport over sustainable alternatives.

This guide describes a database developed by the International Institute for Sustainable Development (IISD) to support the Sustainable Asset Valuation (SAVi) methodology. The database provides monetary estimates for externalities and climate risks, as well as direct costs for infrastructure and technologies, to help estimate the financial performance of infrastructure assets when project-specific data is unavailable.

This report examines the financial subsidies and externalities associated with coal use in China and evaluates how these subsidies hinder the growth of renewable energy.

This executive summary from the Environmental and Energy Study Institute discusses the nature and scale of fossil fuel subsidies in the United States, distinguishing between direct spending and indirect tax expenditures, and calls for a re-examination of these policies in light of industry maturity and environmental externalities.

This report analyzes the 'true cost' of electricity generation in Indonesia, finding that coal is significantly more expensive than renewable energy when subsidies and externalities (air pollution and CO2 emissions) are included. While coal subsidies were estimated at USD 644.8 million in 2015 (likely an underestimate), renewable subsidies totaled USD 132.8 million. Despite a projected slight decline in coal's share of the primary energy mix by 2050, total consumption growth implies a large expansion in coal production, including a near-term plan for 20 GW of new coal capacity.

A SAVi analysis comparing a 9.5 GW offshore wind farm in the North Sea to a 9.5 GW coal plant finds that while coal appears more profitable under business-as-usual conditions, offshore wind is significantly more attractive when accounting for externalities and climate risks. Under a scenario including a 1.5°C temperature increase and a carbon tax of EUR 16.27/MWh, the coal plant's internal rate of return (IRR) drops to 0%, while the wind farm maintains an IRR of 16.61% and a lower levelized cost of electricity (EUR 65.22/MWh vs EUR 185.92/MWh for coal).