Additional Resources Save and Share How to Build a Retrofit Project Step 1: Determine Target Emissions Step 2: Identify Candidate Equipment and Technology Options Step 3: Assess Cost Effectiveness Step 4: Emission Credits Step 5: Consider Implementation Issues

 

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Step 3: Assess Cost-Effectiveness

In making decisions about a retrofit program, the cost effectiveness (per ton of emissions reduced) should be analyzed. The benefit of analyzing cost-effectiveness for retrofit programs is that they are more cost-effective than many other approaches and thus can compete well for funding when cost-effectiveness is the primary criteria. Further, with funding for programs always scarce, getting the most “bang for the buck” is desirable. Finally, if a strategy reduces emissions from more than one pollutant (i.e., NOx and PM), it is important to take this into account when conducting the cost-effectiveness calculations.

The California Air Resources Board (CARB) Carl Moyer Memorial Fund has established a methodology for calculating cost-effectiveness. The Carl Moyer cost-effectiveness guidelines have been adopted, in some cases modified, and used to calculate cost-effectiveness in some of our examples of success stories. Other good resources for background on cost-effectiveness include the EPA web site, TERP and the Emissions Control Technology Association.