Impacts of the sale of house coal and the most polluting manufactured solid fuels: report

1. Introduction

1.1 Background

As part of the Cleaner Air for Scotland 2 (CAFS2) strategy, actions are being investigated by the Scottish Government to further reduce air pollution in Scotland. One such action being considered is the ban on the sale of house coal and manufactured solid fuels with a sulphur content greater than 2%. The proposed fuels under the proposed ban emit significant proportions of particulate matter (PM_2.5) in particular into the environment, and as such the ban could help reduce air pollutant concentrations in Scotland.

This project sought to explore the social and economic impacts of the following three policy option scenarios on different groups (including businesses and consumers):

• Option 1: Take no action- this is a 'do nothing' counterfactual against which the other options are assessed, and assumes no further change in policy that impacts on the consumption of the fuels in scope.
• Option 2: Voluntary Approach- Involves an information campaign informing the public on the health impacts of solid fuel use in homes.
• Option 3: Regulating the sale, distribution and marketing of fuels- A ban of the sale of bituminous (or 'house') coal and high sulphur (>2% sulphur) smokeless fuels.

This analysis informed a Business and Regulatory Impact Assessment (BRIA) concerning the potential introduction of either a voluntary approach or a ban on the sale of certain solid fuels. A BRIA assesses the likely costs, benefits and risk of proposed legislation on the public and private sectors. The assessment ensures the proposed legislation will not have unintended impacts. The assessment provides information about the intervention being considered; the options being assessed as part of the intervention; the potential impacts of the intervention on different groups including businesses; the costs and benefits of the proposed options.

This methodology for the project, and its deliverables, follow the relevant sections of the Business and Regulatory Impact Assessment (BRIA) template and associated Scottish Government guidelines.^[2]

1.2 This report

This report is the final report of the project. This report presents the findings of the analysis and recommendations to support the Business and Regulatory Impact Assessment. It follows the following structure:

• Literature review presenting the data sources reviewed and the main sources identified in the literature
• Business and Regulatory impact assessment presenting the assessment of the policy options, covering:
  • Screening of impacts and affected groups
  • Air quality assessment
  • Economic analysis covering valuation of health impacts, estimation of cost impacts, and analysis of impacts on businesses, competitiveness, consumers and international trade
  • Overall cost-benefit analysis and summary of findings.