Reducing emissions from the electricity sector: the costs and benefits nationwide and for the Empire State

Miscellaneous · Wed Jun 15 04:00:00 EDT 2005

OSTI ID:20838200

Palmer, Karen; Butraw, Dallas; Shih, Jhih-Shyang

Using four models, this study looks at EPA's Clean Air Interstate Rule (CAIR) as originally proposed, which differs in only small ways from the final rule issued in March 2005, coupled with several approaches to reducing emissions of mercury including one that differs in only small ways from the final rule also issued in March 2005. This study analyzes what costs and benefits each would incur to New York State and to the nation at large. Benefits to the nation and to New York State significantly outweigh the costs associated with reductions in SO{sub 2}, NOx and mercury, and all policies show dramatic net benefits. The manner in which mercury emissions are regulated will have important implications for the cost of the regulation and for emission levels for SO{sub 2} and NOx and where those emissions are located. Contrary to EPA's findings, CAIR as originally proposed by itself would not keep summer emissions of NOx from electricity generators in the SIP region below the current SIP seasonal NOx cap. In the final CAIR, EPA added a seasonal NOx cap to address seasonal ozone problems. The CAIR with the seasonal NOx cap produces higher net benefits. The effect of the different policies on the mix of fuels used to supply electricity is fairly modest under scenarios similar to the EPA's final rules. A maximum achievable control technology (MACT) approach, compared to a trading approach as the way to achieve tighter mercury targets (beyond EPA's proposal), would preserve the role of coal in electricity generation. The evaluation of scenarios with tighter mercury emission controls shows that the net benefits of a maximum achievable control technology (MACT) approach exceed the net benefits of a cap and trade approach. 39 refs., 10 figs., 30 figs., 5 apps.

• Research Organization: Resources for the Future, Washington, DC (United States)
• OSTI ID: 20838200
• Country of Publication: United States
• Language: English

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