EPA Air Pollution Control Cost ManualChapter 2 - Cost Estimation: Concepts and Methodology

This chapter presents a methodology that will enable the user, having knowledge of the source being controlled, to produce study-level estimates of the costs incurred by regulated entities for a control system applied to that source. The methodology, which applies to each of the control systems included in this Manual, is general enough to be used with other “add-on” systems as well. Further, the methodology can apply to estimating the costs of fugitive emission controls and other non-stack abatement methods. The cost estimation methodology can be used in the development of assessing private compliance decisions/strategies or effects of permits as various alternatives are considered. If the regulation or permit prescribes a particular control technology (e.g., installation of a scrubber), then the costs of individual controls can be estimated for affected entities. If the regulation or permit establishes performance standards, with flexibility as to how the standards can be achieved, then the cost estimation methods can be used to estimate the costs of various options for achieving the standards.