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Title: Tax-subsidy approach to acid-rain abatement

Journal Article · · Public Util. Fortn.; (United States)
OSTI ID:6731189

Economists generally agree that a pricing approach is the best way to control pollution, but their recommendations for effluent taxes have been unacceptable to politicians and industry because of the income-redistribution effects. Bills now before Congress will mandate a 50% reduction in sulfur dioxide emissions over a 12-year period at a cost of $3.3 to nearly $4 billion to the affected customers. Each state's allotted cutback will depend on the ratio of powerplant emissions in excess of 1.2 pounds per 10/sup 6/ Btu to total regional power-plant emissions in excess of that level. Midwest utilities regard the formula as unfair and want the costs distributed nationally. A special fuel tax based on sulfur emissions is an efficient no fault approach that would stimulate acid-rain abatement. 5 references, 1 table. (DCK)

Research Organization:
State Univ. of New York, Albany
OSTI ID:
6731189
Journal Information:
Public Util. Fortn.; (United States), Vol. 110:7
Country of Publication:
United States
Language:
English