attached to continued pollution, and thus benefit/cost analysis comes into play, marking off the dollar costs of continuing to pollute vs. ways of reducing the costs (Tietenberg, 1994, 52).
Some of the difficulties associated with poor air quality, are the same as difficulties associated with other kinds of pollution. First, an appropriate system for measuring benefits needs to be established. It may seem obvious that clean air is more valuable than dirty air, but what are the particulars? Establishing use values is paramount. Understanding the differences between pollution damage and pollution control values is essential. Nonuse values are another variable, monetized through the use of surveys (Tietenberg, 1994, 52-62).
Approaches to cost estimation of pollution damage or pollution control are found through the survey approach, the engineering approach, or the combined approach. Next risk is dollar pegged through a formula described as the expected present value of net benefits.
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