Has Clinton made externalities extraneous
Over the past several years state utility regulators have become increasingly concerned with the environmental externalities associated with electricity generation. Currently, 26 states have requirements in place, although these vary considerably in scope and complexity. The vast majority apply only to the selection of new resources; the most detailed specify a monetary value for each discharge to the environment. Regulatory concern with environmental externalities stems from the desire to minimize the cost of electricity service to society. Externalities requirements focus on the residual discharges after environmental regulations are complied with. Ignoring externalities leads to inefficient use of resources and environmental damage beyond with may be called a [open quotes]socially optimal[close quotes] level of pollution. Adjusting to the cost options for environmental externalities should lead utilities to select a combination of resources that is closer to the socially optimal mix. President Bill Clinton's recent announcement that the United States will limit its emissions of carbon dioxide (CO[sub 2]) to 1990 levels by 2000 may make externalities regulation superfluous. National limits on sulfur dioxide (SO[sub 2]), nitrogen oxide (NO[sub x]), and CO[sub 2] emissions by utilities will likely be in effect by 2000. It will not be possible to comply with emissions limits solely through changes to the mix of resource additions, even though consideration of environmental externalities in resource addition decisions can reduce incremental emissions. Other strategies to reduce the emissions of existing generating stations, as well as new sources, will be needed.
- OSTI ID:
- 5585237
- Journal Information:
- Public Utilities Fortnightly; (United States), Vol. 131:15; ISSN 0033-3808
- Country of Publication:
- United States
- Language:
- English
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SULFUR DIOXIDE
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