EPA changes cost-benefit analysis for PM2.5 and ozone pollution limits

The EPA is changing its cost-benefit analysis for PM2.5 and ozone pollution limits by no longer monetizing health benefits while continuing to quantify economic costs.
EPA changes cost-benefit analysis for PM2.5 and ozone pollution limits
A What happened
The EPA is changing its cost-benefit analysis process for common air pollutants by qualitatively describing health benefits while carefully quantifying economic costs. The change applies specifically to fine particulate matter smaller than 2.5 micrometers (PM2.5) and ozone. New EPA language says past analyses failed to adequately represent scientific uncertainty in the economic value of reducing these pollutants. A 2024 regulatory impact analysis for stationary combustion turbines estimated monetized benefits of $27–$92 million per year from tightening emissions limits.

Key insights

  • 1

    EPA cites uncertainty as reason to stop monetizing benefits: The EPA’s new language says past analyses did not adequately represent scientific uncertainty in the economic value of reducing PM2.5 and ozone, and it says the agency will not monetize benefits until it is confident enough in the modeling.

  • 2

    Prior analysis quantified large annual benefits for tighter turbine limits: A 2024 regulatory impact analysis for stationary combustion turbines estimated $27–$92 million per year in monetized benefits from tightening emissions limits.

  • 3

    EPA will still quantify emissions and costs: The stated approach keeps quantitative accounting of emissions and economic costs while shifting health benefits to qualitative description.

Takeaways

The EPA is proceeding with a cost-benefit approach for PM2.5 and ozone that quantifies costs and emissions while stopping monetization of health benefits until it says modeling is sufficient.

Topics

Health & Medicine Public Health World & Politics Policy & Regulation Climate & Environment Pollution

Stay ahead with OwlBrief

Daily briefs that distill the world’s important events — clear, verified, and designed for understanding.

Newsletter

Get OwlBrief in your inbox

A fast, high-signal digest of the day’s most important events — plus the context that makes them make sense.

Quick to read. Useful all day.