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U.S. Department of Energy
Office of Scientific and Technical Information

Incentive mechanisms as a strategic option for acid rain compliance

Conference ·
OSTI ID:6673654

Title IV of the Clean Air Act Amendments (CAAA) of 1990 (P.L. 101--549) establishes the use of flexible emission compliance strategies for electric utilities to reduce the emissions of add precursors (SO[sub 2], NO[sub 2]). To control SO[sub 2] emissions, tradeable emission allowances will be used; NO[sub 2] emissions will be controlled by an emission standard, but a utility is permitted to average NO[sub 2] emissions systemwide to meet the standard. Both of these policies promote flexibility and cost savings for the utility while achieving the prescribed emission reduction goals of P.L. 101--549. The use of SO[sub 2] emission allowances has two notable benefits: A utility has the choice of a wide range of compliance methods allowing it to minimize compliance costs and second; the use of transferable emission allowances promote technological innovation with respect to emissions reduction/control. This report discusses the use of regulatory incentives towards the achievement of a Title IV goal of cost reduction of SO[sub 2] emissions.

Research Organization:
Argonne National Lab., IL (United States)
Sponsoring Organization:
DOE; USDOE, Washington, DC (United States)
DOE Contract Number:
W-31109-ENG-38
OSTI ID:
6673654
Report Number(s):
ANL/CP-75646; CONF-9111278--1; ON: DE93004233
Country of Publication:
United States
Language:
English