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Pollution Control Cost Analysis

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In this report, methods and procedures used to conduct cost analysis for regulatory impact analyses are described and improvements are suggested. The microeconomic foundations for cost analysis are discussed and selected aspects of how cost analyses are conducted in practice by EPA are shown. After an introductory Chapter 1, in which highlights and research needs are presented, the report is divided into three major sections. The first section consists of Chapters 2 and 3 and addresses the economic foundations of cost analysis. The second section consists of Chapters 4, 5, and 6 that examine selected aspects of the practice of cost analysis by EPA and, to a lesser extent, other Federal agencies. Finally, the third section contains four case studies of issues arising in cost analyses. Chapters 7, 8, and 9 in this section assess studies of particular regulations, namely: (Chapter 7) deregulation of the herbicide trifluralin, (8) new source performance standard for sulfur dioxide emissions at coal-fired power plants, and (9) standards for volatile organic compounds from the paper coating industry. In Chapter 10, a comparison of EPA cost analysis with the Bureau of the Census (Department of Commerce) pollution control cost estimates is made.


Braden, John B., and Lyon, Randolph M.

Resource Type:

Research paper/report



Use Type:

Basic theory
Special topics
EPA programs
Case studies


Cost analysis



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