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.
- Research Organization:
- Resources for the Future, Washington, DC (United States)
- OSTI ID:
- 20838204
- Resource Relation:
- Related Information: Discussion Paper 05-05
- Country of Publication:
- United States
- Language:
- English
Similar Records
The European Union's emissions trading system in perspective
Modeling the effects of changes in New Source Review on national SO{sub 2} and NOx emissions from electricity-generating units
Related Subjects
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