Cost-benefit analysis of the CAFE (Clean Air For Europe) Programme

The Project Team

The team is led by AEA Technology, with EMRC providing the technical director for the project, and other inputs being provided by experts from the Institute of Occupational Medicine (UK), University of Bath (UK), ECO (Norway), IER-Stuttgart (Germany), University of Leuven (Belgium) and Witteveen-en-Bos (Netherlands).

Objectives

The purpose of the CAFE CBA is to investigate the balance of costs and benefits of scenarios developed in collaboration with the European Commission and the International Institute for Applied Systems Analysis (IIASA) for further improvements of air quality in Europe. Particular consideration is given to impacts on human health, ecosystems and cultural heritage. Account is being taken of the views of expert groups set up by the Commission and through the United Nations Economic Commission for Europe (UNECE), member states and other stakeholders including industry and NGOs.

Major Issues

There are several important issues to be dealt with through the CBA:

• Development of a methodology for robust assessment of benefits in a manner that permits direct comparison with costs;
• Accounting for uncertainty in estimated benefits;
• Providing mechanisms that permit stakeholders to gauge the importance of impacts that cannot currently be quantified (for example on ecosystems) with those that can (for example, a variety of impacts on health and the effects of ozone on crops).

Progress

The initial stages of the contract have concentrated on the development of methods, particularly in relation to quantification of health impacts. A draft report on the methods is currently undergoing consultation. Information on the progress made is available through the CAFE website.