This paper proposes a comprehensive cost-effectiveness analysis to evaluate
environmental policies. While effectiveness is measured as the reduction o
f different pollutants aggregated to a damage index, all the other effects
apart from pollutant reduction are monetarised and expressed as cost. The d
amage index is based on the 'Umwelt-Belastungs-Punkte' (UBP)-method (Enviro
nmental Impact Points) and is extended to include the different geographica
l ranges of various pollutants. The method is then applied to assess the co
st-effectiveness of nitrogen reduction measures in Switzerland. The results
indicate that a less nitrogen-intensive agricultural production and the us
e of a new generation of low nitrogen oxide burners are very cost-effective
. (C) 1999 Elsevier Science B.V. All rights reserved.