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.
| 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.
| 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
|
| 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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