Estimated Attainment Costs and Economic Impacts in Selected Regions of Proposed Revisions to the EPA 8-Hour Ozone Standard
1 January 2008
By Dr. David Harrison with Sierra Research, Inc.
In June 2007, the US Environmental Protection Agency proposed to tighten the 8-hour ground-level ozone National Ambient Air Quality Standard (NAAQS). In this report, a NERA team led by Senior Vice President and Environment Group Head Dr. David Harrison -- in collaboration with researchers at Sierra Research -- evaluates potential attainment costs in five US study regions and potential economic impacts in two US study regions that could result from a tightening of the 8-hour ozone NAAQS. The report concludes that a more stringent NAAQS could lead to substantial increases in attainment costs and substantial adverse effects on regional economies. The size of these impacts depends on the current ozone level in each area and the cost and availability of additional controls on ozone precursor emissions. The study finds that areas of the US will need to implement substantial ozone precursor emission controls just to meet the current NAAQS target. These regions would be left with only expensive alternatives to meet more stringent requirements, putting the regions at a competitive disadvantage. Indeed, some areas of the US may not have emission control options that can be identified based upon available technologies in order to meet more stringent NAAQS targets. The study was prepared for the National Association of Manufacturers.
