A general methodology for rating both performanceand potential of lidar systems used for detection of atmospherictrace constituents including pollutants and gas leaksis developed. By individually examining and decomposing thecontribution of both lidar system parameters and atmosphericoperating conditions on signal-to-noise-ratio, a generalized figureof merit, V, for lidar quality is introduced and evolved.Computer simulations based on V and atmospheric parametersare carried out to determine achievable lidar performance.A simple design procedure is outlined for determination of lidarinstrumentation parameters to ensure the best monitoringefficiency for a given set of initial parameters/requirements,including operation range, minimum detectable gas concentration,and so on.