Economic assessment of materials damage in the South Coast Air Basin: A case study of acid-deposition effects on painted wood surfaces using individual maintenance-behavior data

The case study examines the economic impact of acid deposition damage to painted wood surfaces in the South Coast Air Basin of Southern California. The output of the analysis is an estimate of the annual cost-savings that would be realized for a uniform 10 percent reduction in NO2 concentrations. The economic estimates are developed for individuals who reside in single family homes, make their own maintenance decisions, and perform one of six specific maintenance tasks. Individual maintenance behavior data are collected as part of the study and permit a more disaggregate analysis than earlier economic materials damage assessments. The economic estimates are derived in two ways. First, physical damage functions are used to predict rates of damage. The analysis indicates that the best estimates of annual cost-savings for the scenario examined are $0.7 million (1988) for the physical damage function approach and $3.6 million (1988) for the economic damage function approach. Consideration of some of the factors that contribute to uncertainty indicate that the cost-savings estimates could vary by at least a factor of two.