Cost-Benefit Analysis Case Study on Regulations to Lower the Level of Sulphur in Gasoline
AbstractThe Canadian Cost-Benefit Analysis Guide: Regulatory Proposals, sets out the general methodology and analytical steps to perform a cost-benefit analysis of proposed regulatory changes. To make the Guide operational, this case study has been prepared following the analytical approach recommended by the Guide. In 1994, the sulphur content of Canadian gasoline was found to be high and varied widely across the country. Scientists and health experts have found evidence that emissions of pollutants from vehicles cause considerable harm to the health of Canadians and to the environment. In order to derive the net economic benefits, we integrate the economic benefits with the economic costs for each of the alternative scenarios. In the cost-benefit analysis, all private costs must be measured in terms of their economic opportunity costs. The results indicate that reducing the sulphur in gasoline for any scenario under consideration would generate substantial net health benefits or well-being for Canadians as a whole. Estimates of the net present value (at an eight percent discount rate) range from $1,809 million to $2,663 million.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 1134.
Length: 64 pages
Date of creation: Mar 2007
Date of revision:
Gasoline; Sulphur; Cost-Benefit; Environment;
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-18 (All new papers)
- NEP-ENE-2007-08-18 (Energy Economics)
- NEP-ENV-2007-08-18 (Environmental Economics)
- NEP-REG-2007-08-18 (Regulation)
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- Hammitt James K. & Robinson Lisa A, 2011.
"The Income Elasticity of the Value per Statistical Life: Transferring Estimates between High and Low Income Populations,"
Journal of Benefit-Cost Analysis,
De Gruyter, vol. 2(1), pages 1-29, January.
- Hammitt, James K. & Robinson, Lisa A., 2011. "The Income Elasticity of the Value per Statistical Life: Transferring Estimates Between High and Low Income Populations," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
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