An Assessment of the Economic Effects of Ozone on U.S. Agriculture

Abstract

Past attempts to measure the economic consequences of ozone on agriculture have been based on limited plant science information. This paper reports on an economic assessment of ozone on U.S. agriculture using recent crop response data from the National Crop Loss Assessment Network (NCLAN). The results are derived from a U.S. agricultural sector model that includes major crop and livestock production as well as domestic consumption, livestock feeding and export uses. The economic effects of four hypothetical ambient ozone levels are investigated. The analysis Indicates that the benefits to society of moderate (25%) ozone reductions are approximately $1.7 billion. A 25% Increase in ozone pollution results in costs (negative benefits) of $2.1 billion. These estimates do not reflect compliance costs of achieving the ozone changes and hence are not net benefits.