Economic Analysis of PFAS Regulations
Federal and state PFAS regulations require cost-benefit analysis demonstrating that health and environmental benefits justify compliance costs. PFAS cost-benefit analysis involves complex methodological challenges including PFAS dose-response uncertainty and valuation of non-cancer health endpoints.
Health Benefit Valuation
EPA’s value of a statistical life (VSL) and willingness-to-pay frameworks are applied to quantify avoided mortality and morbidity benefits from PFAS regulations. Avoided cancer cases, thyroid disease, developmental impacts, and immune suppression contribute to benefit estimates often exceeding compliance costs substantially.
Compliance Cost Estimation
Water utility compliance costs, industrial treatment investments, and product reformulation costs are estimated through engineering cost models and industry surveys. EPA’s regulatory impact analyses for PFAS MCLs project aggregate national compliance costs at $1.5–3B annually.
Cost Recovery and Distribution
Cost-benefit analyses should assess distributional equity—who bears compliance costs versus who receives health benefits. Environmental justice analyses show PFAS regulations disproportionately benefit disadvantaged communities that have borne contamination burdens while costs are distributed across broader rate-payer bases.