Below are additional detailed comments on <strong>the</strong> visibility focus group materials.- Little confidence should be attributed to one focus group <strong>of</strong> 9 people in one location(Washington, D.C), and this group should not be seen as sufficient to launch a multi-cityassessment. I advise repeated groups in <strong>the</strong> first location to obtain more data and to addressissues be<strong>for</strong>e proceeding to o<strong>the</strong>r locations, or to conclusions. Among <strong>the</strong> issues that couldbe considered are (1) how do <strong>the</strong> types and kinds <strong>of</strong> locations presented in <strong>the</strong> vistas alter <strong>the</strong>conclusions, if at all? (2) how much are perceived health concerns affecting <strong>the</strong> judgements,and how can this be better addressed? (3) what does it means when people say <strong>the</strong>impairment is acceptable or unacceptable? It is based on <strong>the</strong> view, <strong>the</strong> impact on <strong>the</strong>ir mood,are <strong>the</strong>re behavioral changes? Does this mean <strong>the</strong> identified threshold level is acceptableevery day or several days a year? Does this mean respondents are no longer impacted, or justthat <strong>the</strong>y think <strong>the</strong> likely perceived costs <strong>of</strong> fur<strong>the</strong>r control may not be worth it (and on whatbasis do <strong>the</strong>y make such a judgement), or that fur<strong>the</strong>r improvements are not realistic. In thisrating, respondents are participating in a stated preference (SP) assessment, and moreattention should be given to <strong>the</strong> SP literature. (4) Which measure will be used? For example,in <strong>the</strong> simple rating, <strong>the</strong> cross over point <strong>for</strong> unacceptable is 20 :g/m 3 , but with <strong>the</strong> “howmany hours a day” rating, 32.5 :g/m 3 is acceptable <strong>for</strong> as many as 4 hours a day by twothirds<strong>of</strong> <strong>the</strong> respondents (and thus presumably a level <strong>of</strong> higher than 32 :g/m 3 <strong>for</strong> 4 hours aday would be acceptably on a simple 50% rule), and based on <strong>the</strong> economics data, <strong>the</strong>re isclear impairment below 20 :g/m 3 .- When moving to multiple locations, issues arise such as which vistas to present, what type <strong>of</strong>impairment (which varies in some locations), and how correlated will <strong>the</strong> ratings acrosslocations be to existing conditions across locations (valuation literature would suggest statusquo bias leading to anchoring and some adjustment to improved conditions).- While <strong>the</strong> approach follows similar work at <strong>the</strong> state and local level, it is not clear that <strong>the</strong>approach is sufficiently resolved <strong>for</strong> a national standard when <strong>the</strong> “impairment” thresholdmay be highly variable across locations. How does EPA see using <strong>the</strong> results? How might <strong>the</strong>results tie in to <strong>the</strong> PM NAAQS or o<strong>the</strong>r visibility rules?- The economic valuation questions are preliminary, yet highlight <strong>the</strong>re may be meaningfullosses at visibility levels below <strong>the</strong> 50% rule <strong>for</strong> acceptable ratings. In <strong>the</strong> preliminary focusgroup <strong>the</strong> switch from 50% acceptable to 50% unacceptable occurs at 20 :g/m 3 . However,when provided a choice, 5 <strong>of</strong> 9 would choose 15:g/m 3 and pay $50/year, as opposed to 22.5:g/m 3 and paying $10/year (2 were indifferent between 15:g/m 3 and 22.5:g/m 3 , and 2 chose22.5:g/m 3 over <strong>the</strong> status quo <strong>of</strong> 32.5:g/m 3 ). This suggests a significant value <strong>for</strong> visibilityconditions below <strong>the</strong> 50% rule level <strong>for</strong> ei<strong>the</strong>r <strong>the</strong> simple ratings or hours per day ratings. Isupport fur<strong>the</strong>r investigation into <strong>the</strong> economic valuation approach, with much moreattention to survey design consistent with <strong>the</strong> stated preference valuation literature. Toaddress <strong>the</strong> joint product issue between visibility and health, one might revisit <strong>the</strong> Carson etal. Cincinnati work per<strong>for</strong>med <strong>for</strong> EPRI some years ago, which by <strong>the</strong> way showed lossesdown to just a few days a year <strong>of</strong> visibility impairment (e.g., an indistinguishable changewhen presented on an annual average basis).- There are important concerns with <strong>the</strong> proposed “focus group” approach to this assessment.Generally a study consisting <strong>of</strong> a group <strong>of</strong> focus groups across different locations may not beviewed as sufficiently rigorous <strong>for</strong> <strong>the</strong> intended policy application. EPA should see <strong>the</strong> focusgroup approach only as a preliminary ef<strong>for</strong>t to a larger scale survey ef<strong>for</strong>t.Staff Paper Visibility SectionThis section is better than <strong>the</strong> corresponding section in <strong>the</strong> CD. The two sections shouldbe consistent. A few suggested editorial changes <strong>for</strong> <strong>the</strong> Staff paper (aside from continuing toinclude but reduce <strong>the</strong> discussion <strong>of</strong> this work). On page 5-16, I recommend active use andA - 71
passive use values as opposed to use and non-use, to better identify that in some cases visibilityis actively enjoyed, while in o<strong>the</strong>r cases it is passively enjoyed, and realize that it is <strong>of</strong>tendifficult to separate benefits by <strong>the</strong>se categories (e.g., where does option value fall?). Page 5-23<strong>of</strong> <strong>the</strong> staff paper was missing.<strong>Criteria</strong> <strong>Document</strong> Chapter 4: Environmental EffectsGeneral Notes Overall, this section is reasonably comprehensive. Two overridingconsiderations are (1) can <strong>the</strong> presentation be more focused to key questions in <strong>the</strong> setting <strong>of</strong>standards, ra<strong>the</strong>r than a litany <strong>of</strong> in<strong>for</strong>mation and appendicies (this seems particularly true <strong>for</strong> <strong>the</strong>global climate sections), and (2) can economics, if it is to be addressed at all, be addressed moreconsistency in <strong>the</strong> various subsections.Section 4.2.2: Natural Ecosystems- Lines 7 through 15. I recommend some terminology clean-up here, ra<strong>the</strong>r than propogatingterms inconsistent with <strong>the</strong> broader resource economics literature. All benefits fromecosystems can be described as ecosystem services. I think this could use revision,especially on page 4-20, to state something along <strong>the</strong> lines <strong>of</strong> “<strong>the</strong>re are a wide range <strong>of</strong>ecosystem services, including (1) some with readily recognized market value (e.g., fish,timber, minerals,…) and (2) o<strong>the</strong>rs services without current or readily identified marketvalues. For <strong>the</strong> purposes <strong>of</strong> this discussion only, we refer to <strong>the</strong> first group as “marketservices” or “goods” and <strong>the</strong> second as “non-market services”. Table 4.2 illustrates variousmarket and non-market services provided by ecosystems…” Then, I think Table 4-6 is muchmore in<strong>for</strong>mative than Table 4-2 and could replace Table 4-2.- Page 4-83 identifies economic literature to demonstrate <strong>the</strong> significance <strong>of</strong> ecologicresources and services to mankind (Pimentel and Costanza). These numbers are presented,perhaps, with too much credence. There is significant controversy in <strong>the</strong> economics literatureabout <strong>the</strong> reliability <strong>of</strong> <strong>the</strong> specific estimates (See <strong>the</strong> Special Issue <strong>of</strong> Ecologic Economics,April 1998, and Freeman, 1999), not <strong>the</strong> least <strong>of</strong> which is that economics is much bettersuited to evaluate individual services, or better yet changes in service flows <strong>for</strong> an individualecologic service, than it is to evaluate <strong>the</strong> total value <strong>of</strong> all ecologic services. Economicsaside, most all agree that ecologic services are central to human life and obviously <strong>of</strong>substantial value. Consequently, substantive impact on ecologic services have <strong>the</strong> potential tohave an important impact on human welfare.Section 4.3.9 Visibility Economics. Generally, <strong>the</strong>re should be more consistency to <strong>the</strong> StaffPaper write-up. To <strong>the</strong> degree this is retained along its current lines, I note <strong>the</strong> following edits.- Page 4-111 line 27. Replace “costs” with “losses” (here and generally throughout <strong>the</strong>section).- Page 4-111, line 29, replace “cost/benefits” with “losses from visibility impairment”.- Page 4-111 line 31, and continuing to page 4-113, line 3. The avoided cost method, whileused as a market cost measure <strong>of</strong> materials damage, and sometimes in o<strong>the</strong>r application, isnot used in <strong>the</strong> visibility literature and should not even be discussed here. Just start withsomething similar to line 4 “There are several methods….”- Page 4-113, line 12, it would be useful to have a citation on visibility property value studies(e.g., Chestnut and Dennis, or <strong>the</strong> NAPAP work from a few years earlier <strong>for</strong> summaries,which is cited elsewhere in <strong>the</strong> CD and staff paper). There is quite a bit <strong>of</strong> property valueliterature, with <strong>the</strong> difficulty <strong>of</strong> sorting out value differences into visibility and healthcomponents. One could also cite some <strong>of</strong> <strong>the</strong> new property value applications (Thayer andMurdoch).A - 72
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known, the potential causes deserve
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SCIENCE ADVISORY BOARD STAFFMr. A.
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