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In recent years, the business implications of climate change have gained considerable recognition among companies and investors. However, much of this attention has focused on energy policy and greenhouse gas (GHG) emissions, while neglecting the implications of changing precipitation patterns and resulting water scarcity and water quality risks. Despite a growing consensus among climate experts that freshwater is one of the resources most vulnerable to long-term climate change (Figure 1), there is little awareness and discussion about the potential consequences for businesses and their shareowners. Indeed, climate-related impacts on water resources are already being documented, causing real and imminent. | NATIONAL DAMAGES OF AIR AND WATER POLLUTION By H. T. Heintz Jr A. Hershaft G. C. Horak Contract No. 68-01-2181 Project Officer Thomas E. Waddell Office of Research and Development Prepared for U.S. ENVIRONMENTAL PROTECTION AGENCY OFFICE OF HEALTH AND ECOLOGICAL EFFECTS OFFICE OF RESEARCH AND DEVELOPMENT WASHINGTON D.C. 20460 DISCLAIMER This report has been reviewed by the Office of Research and Development U.S. Environmental Protection Agency and approved for publication. Approval does not signify that the contents necessarily reflect the views and policies of the U.S. Environmental Protection Agency nor does mention of trade names or commercial products constitute endorsement or recommendation for use. i i PREFACE This final report on the National Damages of Air and Water Pollution is submitted under U.S. Environmental Protection Agency Contract 68-01-2821. The material in this report is organized under three chapters presenting the conceptual foundation of estimating pollution damages air pollution damages estimates and water pollution damage estimates respectively. The first chapter contains an appendix describing a related study of human population at risk to various levels of air pollutants. Appendices to subsequent chapters explain in detail the assumptions and calculations employed in obtaining the damage estimates. The work presented here was performed by Dr. H. Theodore Heintz Jr. Senior Economic Consultant Dr. Alex Hershaft Director of Environmental Studies and Mr. Gerald C. Horak Staff Economist with the assistance of Messrs. Erik Jansson and G. Bradford Shea all of Enviro Control. Ms. Anita Calcote was responsible for final typing and production of the report. Review and many valuable comments on the earlier draft were provided by Dr. A. Myrick Freeman III - Bowdoin College Dr. Thomas D. Crocker - University of Wyoming and Dr. Joe B. Stevens - Oregon State Univerisity. The helpful guidance and forbearance of Drs. Fred H. Abel Dennis P. Tihansky and .
