The future of benefit-cost analyses of the Clean Air Act

This review examines the first two studies conducted pursuant to a Congressional mandate that the U.S. Environmental Protection Agency analyze the effects of the Clean Air Act on the "public health, economy, and the environment of the United States." While these studies indicate that overall, the nation received good value for the resources it invested in improving air quality over the past three decades, we don't know if even higher value could have been obtained by changing or eliminating certain potentially inefficient elements. The review focuses on the critical policy and technical choices made in the analyses, including the selection of the appropriate baseline and the level of disaggregation for the studies. It is proposed that a potential third analysis focus on potential new policies not yet mandated by law or regulation. It is also proposed that the next study fill in key information gaps, expand the benefit categories, and incorporate new research on topics such as mortality and morbidity benefits, cost uncertainties, and others.