Socioeconomic Analysis

SCAQMD socioeconomic analysis evaluates cost and other economic impacts of individual rules on affected facilities. Although the California Health and Safety Codes and SCAQMD Governing Board establish the perimeter of such analysis, its sophistication has evolved over the years in response to changing regulatory environment. Previous socioeconomic analysis may be viewed by going to the Meetings and Agendas page, then looking at the Governing Board agenda for specific rules.

Aside from rule-making, socioeconomic analysis is also performed on the Air Quality Management Plan (AQMP). The Socioeconomic Reports on the AQMPs include cost and benefit of clean air and their impact on the local economy.

Additional socioeconomic analyses can be found by visiting the SCAQMD library or contacting Elaine Shen at (909) 396-2715 or via e-mail (eshen@aqmd.gov).


The 2014 Abt Review of SCAQMD’s socioeconomic analysis recommended conducting additional small business analysis and using additional models and methods for estimating small scale economic impacts (i.e., when the proposed rules and amendments would have direct cost impacts concentrated in narrowly defined industries). On October 2, 2015, the SCAQMD Governing Board awarded a contract to Industrial Economics, Inc. (IEc) to assist staff with implementing this Abt recommendation. IEc has finalized its report which contains a broad and systematic review of models, analyses, data, and peer-reviewed studies and recommends specific methodologies, tools, and resources required to perform small business analysis and small scale economic impact evaluations.


On March 3, 2017 the SCAQMD Governing Board adopted the Final 2016 AQMP and the corresponding Socioeconomic Report.

** NOTE: due to large file size, documents may take longer to download **


On January 20, 2017, SCAQMD staff released the Draft Final Socioeconomic Report for the Draft Final 2016 AQMP.  This version and a memorandum summarizing the main revisions in the report will be submitted with the Draft Final AQMP and other related documents for consideration at a public hearing to be held at the February 3, 2017 Governing Board meeting.

** NOTE: due to large file size, documents may take longer to download **


On November 19, 2016, SCAQMD staff released the Draft Socioeconomic Report based on the Revised Draft 2016 AQMP.  This complete report consists of an executive summary, new appendices, as well as revised material from previously released versions of the report.


On November 2, 2016, SCAQMD staff released several new chapters and an appendix as part of the Preliminary Draft Socioeconomic Report.
  • Preliminary Draft Socioeconomic Report - November 2, 2016 (PDF, 1.10Mb) 
    • Chapter 4: Jobs and Other Macroeconomic Impacts
      • Appendix 4-A: REMI Baseline Adjustment
    • Chapter 5: Sub-Regional Distribution of Incremental Costs, Public Health Benefits, and Jobs Impacts
    • Chapter 7: CEQA Alternatives
    • Chapter 8: Summary

Since the release of the Preliminary Draft Chapter 2, the incremental cost estimates have been revised based on the October 7, 2016 Revised Draft 2016 AQMP and better characterizations of incremental cost for a few control measures.

A complete Draft Socioeconomic Report, including updates to Chapters 1-3 and 6 based on the Revised Draft 2016 AQMP, is scheduled to be released around mid-November 2016. We encourage comments on the report be provided as soon as possible, but no later than 30 days from the release of the Draft Socioeconomic Report, to allow staff to include suggestions in revised versions.

Chapters 1 through 3 and Chapter 6 of the Preliminary Draft Socioeconomic Report were published prior to the release of the Revised Draft 2016 AQMP, and therefore, were based on the June 30, 2016 Draft 2016 AQMP.    Socioeconomic Reports are available electronically for the last three AQMPs. Click on the links below to access the socioeconomic reports for the respective AQMPs.   

2012 AQMP | 2007 AQMP | 2003 AQMP | 1997 AQMP


As part of SCAQMD's effort to implement recommendations by Abt Associates in its 2014 review of SCAQMD socioeconomic assessment, a Request for Proposal (RFP) was issued to expand and enhance environmental justice analysis in the 2016 AQMP Socioeconomic Report.  A contract was awarded to Industrial Economics, Inc. (IEc) in October 2015.  The interim reports on alternative EJ definitions and distributional analysis were presented and discussed at three meetings of the 2016 AQMP Socioeconomic Assessment Environmental Justice Working Group and reported to the 2016 AQMP Scientific, Technical and Modeling Peer Review (STMPR) Advisory Group.  IEc's final report reflects comments and suggestions made by the EJ Working Group and STMPR members.

 


As part of SCAQMD's effort to implement recommendations by Abt Associates in its 2014 review of SCAQMD socioeconomic assessment, a Request for Proposal (RFP) was issued to update the literature and methodology used for public health benefits analysis in the 2016 AQMP Socioeconomic Report.  A contract was awarded to Industrial Economics, Inc. (IEc) in June 2015.  The interim reports on results of literature review, recommended concentration-response functions, and recommended valuation functions were presented and discussed at multiple meetings of the 2016 AQMP Scientific, Technical and Modeling Peer Review (STMPR) Advisory Group.  IEc's final reports reflect comments and suggestions made by STMPR members.

 


During its 2014 review of SCAQMD socioeconomic assessment, Abt Associates raised concerns over the practice of projecting macroeconomic impacts associated with non-market benefits, such as willingness-to-pay for health risk reductions.  Dr. Michael Lahr at Rutgers University was contracted as a third party reviewer to assess the method of converting non-market benefits into REMI inputs and how REMI models these benefits to generate macroeconomic impacts.  Dr. Lahr's final report is accompanied by excerpts from the 2014 Abt report and the ensuing responses and clarifications made by REMI and Abt.


SCAQMD was asked by stakeholders to investigate the public health impacts of potential job losses due to local air regulations.  To initiate the investigation, Dr. Erdal Tekin at American University, was contracted to evaluate the general health impacts of unemployment in the South Coast Air Basin, regardless of their relation to air regulations.  Dr. Tekin has submitted his final report (dated December 2015).


The SCAQMD issued a Request for Proposal (RFP) to review socioeconomic analyses that it has been performing for air quality related policies and regulations.  On October 4, 2013, the Governing Board approved a contract with Abt Associates Inc. to review the SCAQMD socioeconomic assessment for Air Quality Management Plans and individual rules with the goal of providing recommendations that could enhance SCAQMD's analysis and be implemented to support the 2016 AQMP.   A final report (dated August 14, 2014) has been prepared as well as staff responses to the Abt recommendations.


A previous review of the SCAQMD's socioeconomic analysis can be found at the following link:
In an effort to augment the SCAQMD socioeconomic analysis in the areas of small business and post-rule impacts, the SCAQMD issued a Request for Proposals (RFP) in 2000 and selected BBC Research & ConsultingLink to external website. in this important endeavor. Under the contractual agreement, BBC has produced the following reports: 

 

Literature and Methodology Review (PDF, 204kb)
Business Stakeholder Interviews
 (PDF, 120kb)
Summary Report: Interim Findings and Preliminary Recommendations (PDF, 295kb)
Facility-based Assessment Case Studies (PDF, 1.98Mb)
Guidelines and Methodology for Facility-based Assessments (PDF, 1.24Mb)
Guidelines and Methodology for Post-Rule Assessments (PDF, 473kb)
Criteria and Resources for Facility-based and Post-Rule Assessment (PDF, 506kb)