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The cost-effectiveness of methanol for reducing motor vehicle emissions and urban ozone

  • Alan J. Krupnick
  • Margaret A. Walls

This article analyzes the costs and emissions characteristics of methanol vehicles. The cost-effectiveness of methanol-the cost per ton of reactive hydrocarbon emissions reduced-is calculated and compared to the cost-effectiveness of other hydrocarbon reduction strategies. Methanol is found to cost from $33,000 to nearly $60,000 per ton, while several other options are available for under $10,000 per ton. The cost per part-per-million reduction in peak ambient ozone levels is also computed for two cities, Houston and Philadelphia. Despite the greater improvement in ozone in Philadelphia than Houston, methanol is found to be more cost-effective in Houston. This result occurs because Houston's distribution and marketing costs are lower than Philadelphia's. The costs in both cities, however, are far higher than estimates of the benefits from acute health improvements. Finally, the reduction in ozone exposure in Los Angeles is estimated and the costs of the reduction compared with an estimate of acute health benefits. Again, the benefits fall far short of the costs.

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File URL: http://hdl.handle.net/10.2307/3325068
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.

Volume (Year): 11 (1992)
Issue (Month): 3 ()
Pages: 373-396

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Handle: RePEc:wly:jpamgt:v:11:y:1992:i:3:p:373-396
Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/34787/home

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  1. ARTHUR FRAAS & ALBERT McGARTLAND, 1990. "Alternative Fuels For Pollution Control: An Empirical Evaluation Of Benefits And Costs," Contemporary Economic Policy, Western Economic Association International, vol. 8(1), pages 62-74, 01.
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