@article {aldy_co-benefits_2021,
	title = {Co-Benefits and Regulatory Impact Analysis: Theory and Evidence from Federal Air Quality Regulations},
	journal = {Discussion Paper},
	year = {2021},
	note = {dp_21_89},
	pages = {45},
	abstract = {This paper considers the treatment of co-benefits in benefit-cost analysis of federal air quality regulations. Using a comprehensive data set on all major Clean Air Act rules issued by the Environmental Protection Agency over the period 1997-2019, we show that (1) co-benefits make up a significant share of the monetized benefits; (2) among the categories of co-benefits, those associated with reductions in fine particulate matter are the most significant; and (3) co-benefits have been pivotal to the quantified net benefit calculation in nearly half of cases. Motivated by these trends, we develop a simple conceptual framework that illustrates a critical point: co-benefits are simply a semantic category of benefits that should be included in benefit-cost analyses. We also address common concerns about whether the inclusion of co-benefits is problematic because of alternative regulatory approaches that may be more cost-effective and the possibility for double counting.},
	author = {Aldy, Joseph and Kotchen, Matthew and Evans, Mary and Fowlie, Meredith and Levinson, Arik and Palmer, Karen}
}
