Environmental Economics

Economic Analysis of Effluent Guidelines for the Paving and Roofing Materials (Tars and Asphalt) Industry

An analysis of the economic impact of water effluent guidelines upon various asphalt and tar using industries was performed based on water treatment cost data supplied by EPA. The asphalt using industries included paving, roofing, and flooring. A methodology was developed to systematically judge the broader economic effects on these materials, resulting from the application of water effluent control, first by assessing the likelihood that treatment costs would be defrayed through price increases, and secondly, if price increases were not likely, the extent to which profits would be impacted and/or the likelihood that plant shutdowns would occur. The study supplements an EPA technical "Development Document" issued in conjunction with the promulgation of guidelines and standards for point sources with this industry category by estimating the broader economic effects (including product price increases, continued viability of affected plants, employment, industry growth, and foreign trade) of the required application of certain of these control technologies.