The proposal now undergoes 60 days of public comment before becoming final - and oil industry organisations were already mobilising to defeat it today. Once it is enacted, the new regulation - depending on its stringency - will have huge implications for local governments which will be charged with ensuring industry and even motor vehicles come into line.
The EPA estimates the costs of introducing stronger smog controls from $19bn to $90bn a year by 2020, but these would be offset by savings between $13bn and $100bn on healthcare costs each year.
In the best case scenario the benefits are 4 times the costs. In the worst case scenario the costs are 7 times the benefits. The mid-range comparison has negative net benefits. So, in terms of efficiency, this looks like a bad policy.
Hat tip: Matt
Update: This comparison of the quantitative benefits and costs does not include the qualitative benefits and costs
