Question

Discuss the challenges associated with the cost and benefit estimation methods in a cost-benefit analysis of pollution abatement. 5 MARKS

Answer 1

Restrictions of Method Application
The application of this technique to available data for the
Washington, D. C. area to illustrate its usefulness includes
the following restrictions:
1. It considers only suspended particulate pollution.
2. It deals only with annual average pollution levels and not short-term peaks.
3. Stationary point sources are the only emitters to be con-
trolled.
4. The only damages considered are residential soiling damages.

To apply the cost-benefit technique to the Washington
area, two sets of input data are required; the costs of con-
trol and the costs of damage. The first inputs to be described,
the costs of control, were obtained from work done by Ernst and Ernst which attacked the problem in the following manner:
1. The sources of particulates for which control costs are
estimated were determined. All are stationary point
sources, which, in this case, are primarily stationary combustion sources. These sources emit particulates from the
combustion of fossil fuels for space heating and power
generation or from refuse incineration.
2. The alternatives for particulate emission control were
determined as shown in Figure 2. This figure shows the
fuel and hardware alternatives available to major com-
bustion sources, which are those that emit over 100
tons/yr. The only alternative stipulated for the smaller
sources is to substitute a lower ash fuel of the same type
used. Within each of the five major alternatives shown in
Figure 2 are many levels. For example, the coal now used
can be switched to coal with lower ash content (this is
represented by the first major alternative on the diagram).
3. Costs and resulting emission levels were calculated for the many possible combinations of alternatives and levels
within alternatives available for each particular source.
As an example of the possible combinations available, a
power plant that utilizes 9% ash coal might switch to 7%
ash coal and add a mechanical control device such as an
electrostatic precipitator. Costs considered in this study
were purchase, installation, maintenance, and operating
costs for mechanical equipment; fuel costs; and boiler
conversion costs for switching types of fuels.