Cost-Effectiveness of a Photochemical Oxidant Episode Regulation

The precursors used to conduct and the results of a cost-effectiveness study of photochemical oxidant episode control actions for the State of Illinois are analyzed. The method is general enough to be used in analyzing short-term episode regulations in other geographical areas and for other types of pollutants. Real costs and the probable emission reductions of the precursor compounds to oxidant formation, hydrocarbons and nitrogen oxides, are estimated for each of twenty-two control actions and for sets of control actions that are implemented at four episode stages. Control actions affect the use of motor vehicles and parking facilities; scheduling of road repairs; and the operation of manufacturing and other facilities having process emissions, electric power plants, commercial establishments, and refuse incinerators. The actions are analyzed and compared on the basis of relative economic efficiency. The expected annual cost of the regulation and the distribution of cost across sectors are also discussed. The annual cost of the oxidant episode regulation in the Chicago SMSA Is estimated to be $12.9 million; expected annual emission reductions are 1180 ton hydrocarbons and 970 ton nitrogen oxide. It is concluded that the expected cost of the regulation is not overly restrictive if the frequency of major curtailments in manufacturing and transportation is low; the cost is relatively small compared with the estimated annual cost of sulfur dioxide and particulate controls.