Incentive mechanisms as a strategic option for acid rain compliance

Conference · Tue Dec 31 04:00:00 EST 1991

OSTI ID:10115061

South, D W; Bailey, K A; McDermott, K A

Title IV of the Clean Air Act Amendments (CAAA) of 1990 (P.L. 101--549) establishes the use of flexible emission compliance strategies for electric utilities to reduce the emissions of add precursors (SO{sub 2}, NO{sub 2}). To control SO{sub 2} emissions, tradeable emission allowances will be used; NO{sub 2} emissions will be controlled by an emission standard, but a utility is permitted to average NO{sub 2} emissions systemwide to meet the standard. Both of these policies promote flexibility and cost savings for the utility while achieving the prescribed emission reduction goals of P.L. 101--549. The use of SO{sub 2} emission allowances has two notable benefits: A utility has the choice of a wide range of compliance methods allowing it to minimize compliance costs and second; the use of transferable emission allowances promote technological innovation with respect to emissions reduction/control. This report discusses the use of regulatory incentives towards the achievement of a Title IV goal of cost reduction of SO{sub 2} emissions.

• Research Organization: Argonne National Lab., IL (United States)
• Sponsoring Organization: USDOE, Washington, DC (United States)
• DOE Contract Number: W-31109-ENG-38
• OSTI ID: 10115061
• Report Number(s): ANL/CP--75646; CONF-9111278--1; ON: DE93004233
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
010800
010900
20 FOSSIL-FUELED POWER PLANTS
200202
200600
29 ENERGY PLANNING, POLICY, AND ECONOMY
294000
54 ENVIRONMENTAL SCIENCES
540220
ACID RAIN
AIR POLLUTION
AIR POLLUTION CONTROL
CHEMICALS MONITORING AND TRANSPORT
COMPLIANCE
ECONOMIC, INDUSTRIAL, AND BUSINESS ASPECTS
ELECTRIC UTILITIES
ENVIRONMENTAL ASPECTS
FOSSIL FUELS
FOSSIL-FUEL POWER PLANTS
MARKET
NITROGEN OXIDES
NOXIOUS GAS AND PARTICULATE EMISSIONS
REGULATIONS
SULFUR DIOXIDE
US CLEAN AIR ACT
WASTE MANAGEMENT