Risk-Cost Analysis for the Regulation of Airborne Toxic Substances in a Developing Context : The Case of Arsenic in Chile

Most developing countries are just beginning to take environmental protection seriously. Determining how much protection is required is a difficult task, requiring that the costs and risks be considered to propose a realistic and effective policy. Chile has serious problems with arsenic pollution associated to emissions from its copper smelters. To regulate these emissions, an ambient concentration standard, applicable to the whole country, is being proposed. However, little is known about the exposure and health effects, and the corresponding costs of reducing emissions. The results of a three year project that combines engineering, economics and health information sheds light on these costs and risks for different values of the ambient standard in a developing context. These show that there are "win-win" options that obtain significant health improvements at low, even negative, costs. However costs quickly increase as the concentration standard becomes more stringent, with few additional health benefits. In many locations naturally high background levels of arsenic make it very costly or even impossible to reach the desired goal. These results make it necessary to examine the use of a case by case regulation for each source, rather than a general one based on a unique ambient quality goal