Tag Archives: external costs

Who Pays for Smog?

In the lead-up to his 2012 reelection campaign, President Obama faced a ticklish problem. Under the terms of the Clean Air Act, the Environmental Protection Agency was required to issue rules governing industrial emissions of smog, that murky ozone pollution driving an epidemic of respiratory diseases and birth defects in our country. But compliance with the EPA rule would have been costly to coal-fired power plants in key electoral states in the Midwest Rust Belt, and the president needed them to remain in office.

So, in a bow to political expediency, Mr. Obama instructed the EPA to delay finalizing the smog rule for several years. Well, several years is now up. This Thursday marks the court-ordered deadline for the EPA to publish its smog rules. And industry-backed groups are pressing an all-out campaign to make them as weak as possible. The U.S. Chamber of Commerce, the American Petroleum Institute, and the National Association of Manufacturers are pushing for a relaxed standard of 70 parts atmospheric ozone per billion. The American Lung Association and environmental groups are advocating a tighter standard of 60 parts per billion.

Smog

Thursday deadline for EPA smog rules.

The difference? In health terms, the industry’s proposal would result in 1.5 million more serious asthma attacks per year, and thousands of premature deaths, mainly among children and the elderly.

You might think this would be easy. The Centers for Disease Control reports that 25 million Americans suffer from asthma, and the number is growing rapidly. About half of them experience asthma attacks every year. About 9 people die from asthma every day. And the annual national medical bill for the disease was last estimated at an astounding $56 billion, and that was almost a decade ago.

For each victim of asthma, the personal cost is enormous. Of course, for the 3,600 who die every year, the discussion of cost is hugely ironic. But for the surviving sufferers, average individual yearly medical costs ran at $3,300 a decade ago, and we all know what’s happened to medical costs since then.

But asthma sufferers aren’t the only ones talking about cost. The industry lobby claims that tighter ozone standards will cause electricity costs to soar, as smokestack scrubbers costing tens of millions of dollars will need to be installed in many plants. They’ve been joined by dozens of mayors and governors from both sides of the political aisle in their appeal: It’s too expensive. We can’t afford it.

But this debate illustrates one of our great American industrial illusions, doesn’t it? As long as pollution doesn’t cost me anything, then it must be essentially free. If I can produce electricity at five cents per kilowatt-hour while generating lots of smog, then rules that will cost me six cents are pure losers. Losers to my shareholders. Losers to my customers.

But who are the losers today? Well, there are those 3,600 dead Americans. And there are those 25 million asthma sufferers. There are the families of black children, who have seen a 50 percent increase in asthma rates in the last ten years. And there’s that not-so-tidy sum of $56 billion in US medical costs for asthma, much of which is attributable to ozone pollution.

And – I suppose I should mention – asthma is only one of smog’s ill effects, which also include cancers, neurological birth defects and more. The province of Ontario alone counts 9,500 premature deaths per year from all effects of ozone pollution. There’s that too.

So maybe it comes down to this: Who should pay the cost of smog in a just country? Should it be the children and the elderly? Or should it be the people profiting from its use?

Just like you, we don’t want higher electric bills. But we’ll solve our problems (see below) without asking the kids, the aging and the poor to pay them for us.

Note: At Good Hand Farm, we generate most of the electricity for three houses and field irrigation pumps from solar arrays. The balance, we purchase from wind farm generators. It isn’t always easy, but it’s doable.