Overview of the Multi-Sector Air Pollutants Regulations: summary


Summary of Cost-Benefit Analysis Results

Following the pre-publication of the Multi-Sector Air Pollutants Regulations (MSAPR) Regulatory Impact Analysis Statement (RIAS) in Canada Gazette Part I, the analysis of costs and benefits has undergone numerous changes that have influenced the results in multiple ways. These changes include updates to nitrogen oxide (NOx) and sulphur dioxide (SO2) emission levels in the business-as-usual case, updated capital and operating and maintenance costs information, and updates to the economic models such as Health Canada’s Air Quality Benefits Assessment Tool. They are the result of information and data provided through extensive industry consultation and Environment and Climate Change Canada’s questionnaires, comments received during the 60-day comment period, and a review of academic and technical literature.

The table below shows the expected costs and benefits from each of the three parts of the Regulations.

Cost-Benefit Analysis
(2016-2035, present value, millions 2015 $CAN, 3% discount rate)
Benefits to Canadians Boilers and heaters Engines Cement
Environmental benefits (largely avoided damage to agricultural crops)
21.6
355.3
Not Monetized
Health benefits (avoided premature mortality, emergency room visits, etc.)
388.5
6,041.9
Not Monetized
Total benefits to Canadians
410
6,397.2
Not Monetized
Benefits to Industry (avoided maintenance cost)
0
44.3
Not Monetized
Total Benefits
410
6,441.5
Not Monetized

Note: For cement, impacts are expected to be low given recent emission performance improvements by the sector, and as such only a qualitative analysis of benefits is provided. However, health and environmental benefits are expected to exceed costs.

Cost-Benefit Analysis
(2016-2035, present value, millions 2015 $CAN, 3% discount rate)
Costs Boilers and heaters Engines Cement
Capital cost to industry
86.2
251.0
4.1
Maintenance cost to industry
0
28.5
3.0
Other compliance cost (e.g. testing/monitoring)
0
99.3
0
Administrative cost
(e.g. preparing/submitting reports, data retrieving and record keeping)
0.4
6.6
0.1
Total Costs to industry
86.6
385.4
7.3
Total Costs to government
(Compliance promotion, enforcement, and regulatory administration)
3.1
8.7
1.4
Total Costs
89.7
394.1
8.7

 

Cost-Benefit Analysis
(2016-2035, present value, millions 2015 $CAN, 3% discount rate)
  Boilers and heaters Engines Cement
Total Benefits
410
6,441.5
Not Monetized
Total Costs
89.7
394.1
8.7
Net Benefits
320.3
6,047.3
N/A
Other metrics - Benefit to cost ratio
5:1
16:1
N/A
Other metrics - Reduction in Fuel Consumption (million MMBtu)
0
84.6 million
0

Note: Totals may not add up due to rounding. Also, separate cost-benefit analyses - including air quality modeling - were conducted for boilers and heaters and engines in order to show the incremental impact of each performance standard. Estimated benefits for covered sectors and equipment types should not be added together, since any interactions in the atmosphere from the combined effect of these standards could lead to higher or lower overall benefits that have not been fully assessed.

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