CABOT-O3: An Optimization Model for Air Quality Benefit-Cost and Distributional Impacts Analysis

Macpherson et al. (2017) presented a mathematical programming model that identifies minimum-cost control strategies that reduce emissions regionally to meet ambient air quality targets. This project introduces the Cost And Benefit Optimization Tool for Ozone (CABOT-O-3), which extends the previous model by updating emissions and air quality relationships, adding a health impacts module, and quantifying distributional impacts. The tool draws upon source apportionment photochemical air quality modeling to characterize the contribution of emissions reductions to ambient ozone concentrations across the contiguous United States. The health impacts analysis module estimates the change in the number and economic value of premature deaths using modeled changes in ozone levels resulting from the application of emission control strategies. These extensions allow us to evaluate strategies to attain ozone air quality standards at minimum cost or to maximize net benefit, while assessing the change in the distribution of health impacts. In a case study applied to stationary pollution sources, we find that, when compared to minimizing costs to meet a uniform ozone standard, maximizing net benefits results in greater emissions and ozone concentration reductions in some parts of the country and fewer in others. Our results highlight potential equity-efficiency trade-offs in designing air quality policies.