I have a 98 longblock in my 88, and I plated off the EGR valve because supposedly the HO camshaft has more valve overlap between exhaust and intake essentially doing the same thing. I didn't notice a change in mileage or horsepower, but I did end up with better emissions test results, even lower hydrocarbon levels which the EGR valve is designed to lower by lowering combustion temps.
Half marks. The intent of the EGR valve is to lower NOx emissions by lowering combustion chamber temps.
It's a tradeoff - having the EGR makes the catalys ever more necessary by increasing HC and CO emissions (lower chamber temps inhibit combustion - HC and CO emissions are the result of incompleat combustion.) However, with low-DCR engines (like ours...) the EGR is of specious utility at best. If an engine has plenty of "quench" (which results in eversion of the fuel/air charge) and a relatively low DCR, the EGR is going to increase HC and CO with minimal decrease in NOx (since there isn't much in the way of NOx emissions from the off.)
When I got my 87, I had to get it smogged. The EGR had failed - as noted by the tech playing around with the thing. HC and CO emissions were right around zero, with NOx running right around zero at well (standstill test, idle/2500RPM.)
However, the EGR was manually tested and found to have failed. So, I had to go replace the thing and get retested. No change in NOx, but HC and CO emissions were just barely passing.
Tell me again how necessary this thing is - I just love to hear spurious logic! Minimal change to fuel economy, and I did notice a power drop (somewhat slower acceleration, harder time "pulling," harder time getting up to pass) after replacing the thing - which does make some sense. The EGR is exactly what it says on the tin - it "recirculates" exhaust gas into the intake stream. This is like burning wet wood - you can't get the fire as hot as you should be able to.
Meanwhile, we now have
three-way catalyst beds - they work on HC (oxidising,) CO (oxidising) and NOx (reducing) - with the reduction of NOx emissions providing most of the oxygen needed to oxidise the HC and CO emissions (the rest is generally provided by an overpriced and failure-prone "smog pump" that pushes fresh air into the exhaust stream and into a three-way catalyst bed.)
As far as the EGR itself, I'd like to see the thing replaced with a fogger system fed with MeOH and water (methanol is cheaper because F troop doesn't tax it...) which will not only reduce NOx emissions, but won't crap up the intake with carbon, and will help to keep the combustion chamber clean (which will help to keep "ping" and "knock" down as well - win-freakin'-win, baby!) Foggers have been around since WWII, when the Allies were trying to gain air superiority through increasing aircraft engine performance and increasing the operational ceiling of piston-engine driven aircraft. It's simple, it's proven, and failures are damned near
zero (you just have to keep the supply tank filled up, and that can be sized to coincide with fuel fills without too much trouble. I seem to want to recall that you'd go through about one gallon of "fog water" for every ten gallons of fuel, so the tank size need not be great.)