Environmental Economics 6th Edition by Martha k Field,Barry Field

Exercise 2

One of the main studies used in evaluating the EPA's decision to ban leaded gasoline estimated that the avoided medical costs and avoided remedial education costs of such a ban would be about $225 million. What are the advantages and disadvantages of using this number as a measure of the health-related benefits of the ban? (For more on this, see Albert L. Nichols, "Lead in Gasoline," in Richard D. Morgenstern, ed., Economic Analysis at EPA, Assessing Regulatory Impact , Resources for the Future, Washington, D.C., 1997, pp. 49-86.)