At what cost do we reduce pollution Shadow prices of SO[sub 2] emissions

Journal Article · Thu Jan 01 04:00:00 EST 1998 · Energy Journal

OSTI ID:6443647

Swinton, J R ^[1]

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1. Univ. of South Florida, Tampa, FL (United States)

The US EPA's infant market for SO[sub 2] emissions has the potential for improving the cost effectiveness of reducing acid rain pollutants. If the market works as planned, over time one should see the cost of reducing additional amounts of sulfur dioxide converge across plants. The results of the study described here demonstrate that before the market opened marginal abatement costs varied wildly across plants. This work provides estimates of the shadow price of SO[sub 2] abatement using the output distance function approach for Illinois, Minnesota and Wisconsin coal-burning electric plants. The results demonstrate that the coal-burning electric plants with the highest emissions rates are also the plants with the lowest marginal abatement costs, a fact that may explain lower-than-expected prices in the new market for allowances. The data include information about plants with installed scrubber capital allowing for an investigation of the effect of scrubber capital on marginal abatement costs.

• OSTI ID: 6443647
• Journal Information: Energy Journal, Journal Name: Energy Journal Vol. 19:4; ISSN ENJODN; ISSN 0195-6574
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
AIR POLLUTION CONTROL
CHALCOGENIDES
CONTROL
COST BENEFIT ANALYSIS
COST ESTIMATION
DEVELOPED COUNTRIES
ECONOMIC ANALYSIS
ECONOMICS
ILLINOIS
MINNESOTA
NORTH AMERICA
OXIDES
OXYGEN COMPOUNDS
POLLUTION CONTROL
SULFUR COMPOUNDS
SULFUR DIOXIDE
SULFUR OXIDES
USA
WISCONSIN