ASSESSMENT OF THE ECONOMIC COSTS OF DAMAGE CAUSED BY AIR-POLLUTION

Cost-benefit analysis is one of the fundamental tools for the developm ent of economic instruments for pollution control. The costs of variou s abatement measures are reasonably well characterised. However, asses sment of the economic costs of pollutant impacts is less well develope d. This paper reports on two studies carried out for DGXII of the Euro pean Commission, the ExternE-Project and the Green Accounting Research Project. Both studies have been performed by international, multi-dis ciplinary research teams. Analysis of the effects of emissions of PM(1 0), SO2, NOx and VOCs (as ozone precursors) has included assessment of human health, materials, crops and other terrestrial ecosystems, and freshwater fisheries. The analysis follows the 'impact pathway' approa ch, linking dose-response functions, valuation data and other models. It differs significantly to earlier 'top-down' approaches that made on ly very limited use of the wealth of scientific data available. Most s uccess has been achieved in analysis of impacts on human health, build ing materials and crops. Significant uncertainties exist for these rec eptors, though these have been identified and are now being addressed. Assessment of impacts on other receptors, perhaps most notably forest s, is more limited. The methodology is particularly applicable for ana lysis of impacts on receptors for which the critical loads approach is not appropriate.