Policy paper

An economic analysis to inform the air quality strategy

This publication was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The aim of this report is to present both the methodology and results of the economic analysis on the air quality strategy (AQS).

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The Interdepartmental Group on Costs and Benefits (IGCB) is tasked with undertaking the formal economic analysis of air quality policy underpinning the new AQS and therefore the aim of this report is to present both the methodology and results of this analysis.

This update builds on the analysis in the previous IGCB report in two significant ways:

  • Firstly by updating the existing measure and where appropriate introducing new measures in light of recent developments and information received during the AQS consultation period. For convenience any changes in the analysis have been highlighted at the beginning of each chapter; and
  • It also extends the IGCB methodology to include sensitivity analysis using Monte Carlo techniques. This analysis allows the impacts of measures to be focused by using the underlying probability distributions associated with some key sensitivities.