Utilizing the market to control sulfur dioxide emissions

Technical Report · Fri Dec 01 04:00:00 EST 1995

OSTI ID:126010

Loeher, III, C F ^[1]

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1. Walcoff & Associates, Fairfax, VA (United States)

Environmental policy in the United States is evolving; command and control approaches are being slowly replaced with market-based incentives. Market-based regulation is favorable because it provides the regulated community with flexibility in choosing between pollution control options. A recent application of a market-based approach is Title IV of the 1990 Clean Air Act Amendments. This paper evaluates the advantages of utilizing market-based incentives to control sulfur dioxide emissions. The evaluation embodies an extensive methodology, which provides an overview of the policy governing air quality, discusses pollution control philosophies and analyzes their associated advantages and limitations. Further, it describes the development and operation of a market for emissions trading, impediments to the market, and recommends strategies to improve the market. The evaluation concludes by analyzing the results of five empirical simulations demonstrating the cost-effectiveness of employing market-based incentives versus command-and-control regulation for controlling sulfur dioxide emissions. The results of the evaluation indicate that regulatory barriers and market impediments have inhibited allowance trading. However, many of these obstacles have been or are being eliminated through Federal and state regulations, and through enhancement of the market. Results also demonstrate that sulfur dioxide allowance trading can obtain identical levels of environmental protection as command-and-control approaches while realizing cost savings to government and industry.

• Research Organization: National Association of Environmental Professionals, Washington, DC (United States)
• OSTI ID: 126010
• Report Number(s): CONF-9506115--
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
54 ENVIRONMENTAL SCIENCES
AIR POLLUTION CONTROL
EMISSION
ENVIRONMENTAL POLICY
FINANCIAL INCENTIVES
SULFUR DIOXIDE