Cost-Benefit Analysis and the Development of Acidification Policy in Europe

Countries that will ratify the new Protocol to abate acidification, eutrophication and ground-level ozone, also known as the Göteborg-protocol, are committed to meet national emission ceilings for SO₂, NOx, VOCs and NH₃ in 2010. AEA Technology calculated impacts and monetised benefits for four scenarios used during the preparation of the new Protocol, each scenario compared with the situation 1990. The calculated benefits were compared with the costs calculated by the International Institute for Applied Systems Analysis (IIASA) using the RAINS model. The overall conclusion is that the benefits are likely to exceed the costs of implementing the scenarios considered in the study, by a factor of between two and three. Based on the principal set of assumptions followed in the study, it appeared that impacts on haity and materials were negligible. Impacts on ecosystems remained unqualified.