This report presents the methodology that will be used for analyzing the economic impact of this and future test rules. The methodology follows a two-stage approach. All chemicals are subjected to a Level I Analysis. This analysis consists of evaluating four market characteristics: demand sensitivity, costs, industry structure, and market expectations. The results of the Level I analysis (along with a consideration of the costs of the required tests) indicate the potential for significant adverse economic impacts. Where the indication is negative, no further economic analysis is required. However, for those chemical substances or groups where the Level I analysis indicates a potential for significant economic impact, a more detailed and comprehensive analysis is conducted. This Level II analysis attempts to predict more accurately whether or not this potential will be realized, and, if so, its magnitude. The Level I analysis for chloromethane indicates that the proposed health effects test rule will not impose any significant economic impact on manufacturers of chloromethane. For the chlorobenzenes group, the results of the Level I analysis indicated that a potential for economic impacts exists; however, the Level II analysis concludes that the economic impacts are expected to be minor.

"Mathtech, Inc." "Office of Regulatory Analysis, Office of Toxic Substances." "Economic impact analysis of proposed test rule for chloromethane and chlorobenzenes, support document for proposed health effects test rule Toxic Substances Control Act, Section 4"--Cover. "June 1980." Includes bibliographical references. "Contract no. 68-01-5864."