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Controlling acid deposition: A general equilibrium assessment

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  • Roy Boyd
  • Kerry Krutilla

Abstract

In this paper, we evaluate the impact of the SO 2 provisions in the 1990 Clean Air Act. A computable general equilibrium (CGE) model of the United States is used to evaluate the implications of this law for a number of economic sectors. We find that the largest negative impact falls on the coal industry. Output in the refining sector also decreases, but agricultural production increases as consumers shift spending into food and wood based products. Copyright Kluwer Academic Publishers 1992

Suggested Citation

  • Roy Boyd & Kerry Krutilla, 1992. "Controlling acid deposition: A general equilibrium assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(3), pages 307-322, May.
    • Handle: RePEc:kap:enreec:v:2:y:1992:i:3:p:307-322
    DOI: 10.1007/BF00376202
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    References listed on IDEAS

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    1. Hazilla, Michael & Kopp, Raymond J, 1990. "Social Cost of Environmental Quality Regulations: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 853-873, August.
    2. Lars Bergman, 1991. "General equilibrium effects of environmental policy: A CGE-modeling approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(1), pages 43-61, March.
    3. Portney, Paul R, 1990. "Economics and the Clean Air Act," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 173-181, Fall.
    4. Boyd, Roy & Krutilla, Kerry, 1988. "The politics and consequences of protectionism: A case study in the North American lumber market," Journal of Policy Modeling, Elsevier, vol. 10(4), pages 601-609.
    5. Edward A. Hudson & Dale W. Jorgenson, 1974. "U.S. Energy Policy and Economic Growth, 1975-2000," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 461-514, Autumn.
    6. Boyd, Roy, 1988. "An economic model of direct and indirect effects of tax reform on agriculture," Technical Bulletins 312290, United States Department of Agriculture, Economic Research Service.
    7. Lars Mathiesen, 1985. "Computational Experience in Solving Equilibrium Models by a Sequence of Linear Complementarity Problems," Operations Research, INFORMS, vol. 33(6), pages 1225-1250, December.
    8. Ballard, Charles L & Shoven, John B & Whalley, John, 1985. "General Equilibrium Computations of the Marginal Welfare Costs of Taxes in the United States," American Economic Review, American Economic Association, vol. 75(1), pages 128-138, March.
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    Cited by:

    1. Gregg Frasco & Chulho Jung, 2001. "When producer surplus underestimates rents," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(4), pages 393-405, December.

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