Tax-subsidy approach to acid-rain abatement
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
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POLICY AND ECONOMY
54 ENVIRONMENTAL SCIENCES
20 FOSSIL-FUELED POWER PLANTS
ACID RAIN
AIR POLLUTION ABATEMENT
FINANCIAL INCENTIVES
FOSSIL-FUEL POWER PLANTS
SUBSIDIES
TAXES
ATMOSPHERIC PRECIPITATIONS
POLLUTION ABATEMENT
POWER PLANTS
RAIN
THERMAL POWER PLANTS
290300* - Energy Planning & Policy- Environment
Health
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296000 - Energy Planning & Policy- Electric Power
500600 - Environment
Atmospheric- Regulations- (-1989)
200200 - Fossil-Fueled Power Plants- Waste Management