Service contract for carrying out cost-benefit anlysis of air quality related issues, in particular in the Clean Air for Europe (CAFÉ) Programme. Methodoloy for the cost-benefit analysis for CAFÉ:

This document defines in detail the methodology used for quantification and valuation of the health impacts of ozone and particulate matter for the cost-benefit analysis (CBA) being undertaken as part of the Clean Air For Europe (CAFE) programme. An earlier version was previously released as an appendix to the draft methodology report issued by the CBA team in July 2004, though it was subsequently felt that the detailed assessment of methods for estimating health effects should be presented as a separate volume. This is partly because of the importance of health effects within the overall CBA. It is also because there is not at present an alternative detailed write-up of health endpoints, and associated concentrationresponse functions, background rates and health impact assessment (HIA) methodology, for estimating the benefits to health of reducing air pollution in Europe. This is not the case for (e.g.) effects of air pollution on ecosystems and crops, for which ICP/MM (Mapping and Modelling) (2004) has recently produced extensive guidance. Chapter 1 raises a wide range of general issues concerning the process of HIA in general. Chapter 2 onwards describes the substantial and main body of the HIA methodology report. It has been revised following peer review, stakeholder comment, and the opportunity for further investigation and discussion of available data. Efforts have been made to ensure consistency between our methodology and the various evaluations that the World Health Organisation (WHO) provided for CAFE. These included: a. a comprehensive but generally qualitative review of the health effects of particles, nitrogen dioxide and ozone; b. a similarly comprehensive though again generally qualitative set of answers to followup questions from the CAFE Steering Group; c. a quantitative meta-analysis of studies in Europe, regarding mortality from time series studies, hospital admissions, and cough among people with chronic respiratory symptoms; and d. specific quantitative guidance on (i) quantifying mortality attributable to PM and to ozone and (ii) extrapolation to low concentrations and the role of thresholds, prepared as guidance to the RAINS Integrated Assessment Model within the WHO Task Force on Health (TFH) of the UNECE Convention on Long-Range Trans-Boundary Air Pollution (CLRTAP). Bart Ostro noted in his review of the July 2004 draft of health effect analysis, that there still remained a substantial amount of work to clarify exactly what impact pathways for morbidity would be quantified, what concentration-response (C-R) functions would be used, and what sources of data for background rates. Most of the revision has focused on filling these gaps, so that the evaluation of morbidity would be both comprehensive and credible. Volume 1 of the methodology report contains a general description of the CBA methodology for the CAFE Programme in terms of: • The general framework for quantification of impacts, including links to other models such as RAINS, TREMOVE and EMEP; • The assumptions and data (stock at risk inventories, response functions, unit valuations) that will form the basis of the ëcoreí quantification of benefits, including a summary of the information presented in this volume; • The approach for the ëextended CBAí, designed to enable consideration to be given to impacts even where quantification is not possible; • The approach for dealing with other uncertainties. It includes also a summary Chapter on health. Consequently, the present Executive Summary will be brief.