Economics of pollution trading for SO{sub 2} and NOx

Miscellaneous · Tue Mar 15 04:00:00 EST 2005

OSTI ID:20838204

Burtraw, Dallas; Evans, David A; Krupnick, Alan; Palmer, Karen; Toth, Russell

For years economists have urged policymakers to use market-based approaches such as cap-and-trade programs or emission taxes to control pollution. The sulphur dioxide (SO{sub 2}) allowance market created by Title IV of the 1990 US Clean Air Act Amendments represents the first real test of the wisdom of economists' advice. Subsequent urban and regional applications of NOx emission allowance trading took shape in the 1990s in the United States, culminating in a second large experiment in emission trading in the eastern United States that began in 2003. This paper provides an overview of the economic rationale for emission trading and a description of the major US programs for SO{sub 2} and nitrogen oxides. These programs are evaluated along measures of performance including cost savings, environmental integrity, and incentives for technological innovation. The authors offer lessons for the design of future programs including, most importantly, those reducing carbon dioxide. 128 refs., 1 fig., 1 tab.

• Research Organization: Resources for the Future, Washington, DC (United States)
• OSTI ID: 20838204
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
20 FOSSIL-FUELED POWER PLANTS
29 ENERGY PLANNING, POLICY, AND ECONOMY
54 ENVIRONMENTAL SCIENCES
AIR POLLUTION
AIR POLLUTION CONTROL
ALLOCATIONS
AMENDMENTS
CLEAN AIR ACTS
COAL
COMPLIANCE
COST
ECONOMIC IMPACT
EMISSIONS TRADING
ENVIRONMENTAL POLICY
FOSSIL-FUEL POWER PLANTS
MARKET
NITROGEN OXIDES
PARTICULATES
POLLUTION LAWS
POLLUTION REGULATIONS
POWER GENERATION
PUBLIC HEALTH
SOCIAL IMPACT
SULFUR DIOXIDE
TECHNOLOGY IMPACTS
USA