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Title: Economics of pollution trading for SO{sub 2} and NOx

For years economists have urged policymakers to use market-based approaches such as cap-and-trade programs or emission taxes to control pollution. The sulphur dioxide (SO{sub 2}) allowance market created by Title IV of the 1990 US Clean Air Act Amendments represents the first real test of the wisdom of economists' advice. Subsequent urban and regional applications of NOx emission allowance trading took shape in the 1990s in the United States, culminating in a second large experiment in emission trading in the eastern United States that began in 2003. This paper provides an overview of the economic rationale for emission trading and a description of the major US programs for SO{sub 2} and nitrogen oxides. These programs are evaluated along measures of performance including cost savings, environmental integrity, and incentives for technological innovation. The authors offer lessons for the design of future programs including, most importantly, those reducing carbon dioxide. 128 refs., 1 fig., 1 tab.
Authors:
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Publication Date:
OSTI Identifier:
20838204
Resource Type:
Miscellaneous
Resource Relation:
Related Information: Discussion Paper 05-05
Research Org:
Resources for the Future, Washington, DC (United States)
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; 20 FOSSIL-FUELED POWER PLANTS; 01 COAL, LIGNITE, AND PEAT; 54 ENVIRONMENTAL SCIENCES; SULFUR DIOXIDE; NITROGEN OXIDES; EMISSIONS TRADING; FOSSIL-FUEL POWER PLANTS; AIR POLLUTION; ALLOCATIONS; CLEAN AIR ACTS; AMENDMENTS; USA; POLLUTION REGULATIONS; ENVIRONMENTAL POLICY; COAL; POWER GENERATION; COMPLIANCE; SOCIAL IMPACT; PUBLIC HEALTH; ECONOMIC IMPACT; TECHNOLOGY IMPACTS; COST; MARKET; PARTICULATES; AIR POLLUTION CONTROL; POLLUTION LAWS