Economic analysis
Air quality impacts
Air pollution harms human health and the environment. A conservative estimate for one type of pollution (particulates) is that it reduces average life expectancy in the UK by around six months, worth £16 billion a year.
Reflecting air quality in decision-making
You should reflect air quality impacts in decision-making wherever possible, in line with HM Treasury’s Green Book guidance. These web pages outline the techniques available to government analysts (local or national). These techniques were developed by the Interdepartmental Group on Costs and Benefits (Air quality) subgroup (IGCB(A)).
Selecting a technique
Will your proposal affect compliance with legal limits on air pollution?
- If no – you should use the damage cost approach, or the impact pathway approach if total air quality impacts exceed £50m
- If yes – you should use the unit abatement cost approach for emission changes above the prescribed minimum (use the damage cost approach for changes below). If the air quality impacts exceed £50m, consider a detailed abatement assessment.
Contact
Inter-Departmental Group on the Costs and Benefits of Air Quality (IGCB(A))
Natural Environment Economics
Department for Environment, Food and Rural Affairs (Defra)
Area 3D, Nobel House
London SW1P 3JR
Email: igcb@defra.gsi.gov.uk