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Title: Why are allowance prices so low? An analysis of the SO{sub 2} emissions trading program

This paper presents an analysis of the reduction in SO{sub 2} emissions by electric utilities between 1985 and 1993. We find that, as of 1993, emissions had been reduced for reasons largely unrelated to the emission reduction mandate incorporated in Title IV of the 1990 Clean Air Act Amendments. The principal reason appears to be the change in the economics of coal choice that resulted from the remarkable decline in rail rates for low sulfur western coal delivered to higher sulfur coal-fired plants in the Midwest. Consequently, one of the reasons that allowance prices are lower than expected is that less sulfur need be removed to meet the Title IV caps on aggregate SO{sub x} emissions.
Authors:
;
Publication Date:
OSTI Identifier:
617866
Report Number(s):
CONF-970145--
TRN: 98:002057-0035
Resource Type:
Conference
Resource Relation:
Conference: 2. joint conference on acid rain and electric utilities, Scottsdale, AZ (United States), 20-22 Jan 1997; Other Information: PBD: 1997; Related Information: Is Part Of Acid rain & electric utilities II; PB: 1047 p.
Publisher:
Air & Waste Management Association, Pittsburgh, PA (United States)
Country of Publication:
United States
Language:
English
Subject:
20 FOSSIL-FUELED POWER PLANTS; FOSSIL-FUEL POWER PLANTS; AIR POLLUTION CONTROL; ACID RAIN; ELECTRIC UTILITIES; AIR QUALITY; COMPLIANCE; POLLUTION REGULATIONS; SULFUR DIOXIDE; FLUE GAS