A Cost-Benefit Approach to Air Pollution Control

Abstract

Air pollution has plagued the urban areas of our Nation for many years, both as a serious health hazard and as a costly economic burden. Users of the air as a waste disposal medium have treated it as a free resource with no regard for the damages incurred by receptors of the dirty air. Unfortunately, no self-regulating market forces exist that will bring this diseconomy into an acceptable equilibrium. An outside regulating force, which can affect abatement of air pollution, is needed to achieve control of air pollution to a level acceptable to a community. A prerequisite of any proposed regulatory action to be applied by an outside force, however, is the need to define an acceptable level of pollution. One means of accomplishing the task is to apply an economic evaluation, in the form of a cost-benefit analysis, to the problem. Previous analyses of the economic aspects of air pollution have stressed only one side of the problem. That is, they have dealt only with the cost of control or the damages caused by air pollution. No analysis has combined both aspects into a meaningful analysis of the overall economic impact. The objective of this paper is to present a technique that can be used to find the level of pollution abatement in an area that balances the cost of controlling pollution with the benefits received from its control. To present a clearer picture of this technique and its results, it has been applied to the Washington, D. C. area to find the optimum level of particulate abatement. This method is generally applicable to any area, in which an air pollution problem exists.