IOOI analysis -based monetization
Introduction
Upright conducts IOOI (Input, Output, Outcome, Impact) based monetization with the following two-step process:
Impact pathway analysis: The IOOI (Input, Output, Outcome, Impact) framework is applied to scope relevant inputs and outputs, and their consequences as outcomes and impacts.
Monetization: Impacts are monetized using monetization factors corresponding to the impacts defined in the impact pathway analysis.
Example (GHG emissions)
We will demonstrate this monetization approach using harms caused by human-emitted carbon emissions as an example.
Figure 1 summarizes forms of carbon emissions along with their consequences using the structure provided by the IOOI framework.
The monetization factor Upright uses for CO2 equivalent emissions is 417 USD per CO2 tonne, based on Ricke, K., Drouet, L., Caldeira, K. et al. Country-level social cost of carbon. Nature Clim Change 8, 895–900 (2018).
Background on the cost of carbon figure used by Upright
Upright has used the cost of 417 USD per CO2 tonne since 2018, when the Ricke et al. paper was published.
While there has been an abundance of new research published since that, it has not provided a compelling reason to update the figure, as the 417 USD figure falls well into the (published) margins of error of also newer mainstream research, or simply reflects a slight change in assumptions, such as discount rate (as in this article).
See references below for more information.
IOOI outputs vs impacts
In the IOOI framework, Carbon emissions — as well as several other commonly measured impacts — are considered "outputs" rather than "impacts".
Upright uses IOOI analysis to translate outputs — like emissions — and direct impacts — like Meaning & Joy — to a common class of impacts that can be monetized consistently.
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