Economic evaluation of energy's environmental costs with special reference to air pollution.

Briefly develops the welfare foundations of benefit-cost analysis for air pollution control. Points out some implications for environmental policy, and considers issues that arise in implementation. Methods and some illustrative results of benefit estimation are presented and critically evaluated. Distinguishes betwen the method generally employed by noneconomists, to identify physical effects of pollution, and methods that have been employed by economists to evaluate directly several such effects simultaneously. Differentiates between those that rely on observed behavior, and those that rely on surveys. Discusses how the empirical findings can be used to evaluate the benefits from improvements to air quality, by type of effect, such as health and nonhealth, corresponding to particular regulatory programs, for primary and secondary national ambient air quality standards. Concludes with a very rough estimate of energy-related benefits.-from Authors