Economic Impacts Analysis of a Low RVP Fuel Program
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Based on the new standards set by the Environmental Protection Agency, related to fine particulate matter and Ozone, Hamilton County and surrounding counties in Ohio and Kentucky, fall into the non-attainment category. The new Reid Vapor Pressure (RVP) gasoline program was proposed by the Clean Air Consortium of Southwest Ohio to reduce pollutant levels responsible for high Ozone concentrations. Even though its introduction will increase the price of gasoline, affecting consumers in terms of increased expenditure and producers in terms of higher cost of doing business in the region, it will also result in a cleaner and healthier environment in which to live. An economic impact analysis was conducted using an economic forecasting model developed by Regional Economic Model Inc. (REMI) Policy Insight to assess the costs and benefits of the program.
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