Tradable sulfur dioxide emission permits and European economic integration

Journal Article · · Resources; (United States)

OSTI ID:5444748

Burtraw, D

An international system of tradable emission permits has engendered interest as a way to control emissions of sulfur dioxide (SO[sub 2]) in Europe. Like other forms of incentive-based regulation, emission permit trading has the potential to achieve a given emissions reduction goal at less cost than command-and-control regulation. However, the full cost-saving potential of SO[sub 2] emission trading in Europe's electricity industry, which generates 65 percent of Europe's total SO[sub 2] emissions, is significantly undermined by the structural and regulatory diversity of that industry. Despite this fact, emission permit trading can be justified on the ground that it would promote the reflection in electricity prices of the social costs of pollution resulting from electricity generation. The internalization of social costs in these prices is critical to Europe's realization of economic unification and to the liberalization of European energy markets.

• OSTI ID: 5444748
• Journal Information: Resources; (United States), Journal Name: Resources; (United States) Vol. 113; ISSN 0048-7376; ISSN RESUBS
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
290300 -- Energy Planning & Policy-- Environment
Health
& Safety
ADMINISTRATIVE PROCEDURES
AIR POLLUTION
AIR POLLUTION CONTROL
CHALCOGENIDES
CONTROL
COST BENEFIT ANALYSIS
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC UTILITIES
EUROPE
INSTITUTIONAL FACTORS
OXIDES
OXYGEN COMPOUNDS
PERMITS
POLLUTION
POLLUTION CONTROL
POLLUTION REGULATIONS
PUBLIC UTILITIES
REGULATIONS
SOCIO-ECONOMIC FACTORS
SULFUR COMPOUNDS
SULFUR DIOXIDE
SULFUR OXIDES