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Cost Savings, Market Performance and Economic Benefits of the U.S. Acid Rain Program

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  • Burtraw, Dallas

    (Resources for the Future)

Abstract

This paper reports on four areas of research concerning Title IV of the 1990 Clean Air Act Amendments that regulates emissions of SO2 from electricity generation. The first is the costs of the program over the long-run as estimated from the current perspective taking into account recent changes in fuel markets and technology. We compare projected costs with potential cost savings that can be attributable to formal trading of emission allowances. The second area is an evaluation of how well allowance trading has worked to date. The third area is the relationship between compliance costs and economic costs from a general equilibrium perspective. The fourth area is a comparison of benefits and costs for the program.

Suggested Citation

  • Burtraw, Dallas, 1998. "Cost Savings, Market Performance and Economic Benefits of the U.S. Acid Rain Program," RFF Working Paper Series dp-98-28-rev, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-98-28-rev
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    References listed on IDEAS

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    1. Ian W.H. Parry, 2002. "Pollution Taxes and Revenue Reycling," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 15, pages 235-248, Edward Elgar Publishing.
    2. Portney, Paul R, 1990. "Economics and the Clean Air Act," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 173-181, Fall.
    3. Curtis Carlson & Dallas Burtraw & Maureen Cropper & Karen L. Palmer, 2000. "Sulfur Dioxide Control by Electric Utilities: What Are the Gains from Trade?," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1292-1326, December.
    4. Burtraw, Dallas & Bohi, Douglas, 1997. "SO2 Allowance Trading: How Experience and Expectations Measure Up," RFF Working Paper Series dp-97-24, Resources for the Future.
    5. Bohi, Douglas R. & Burtraw, Dallas, 1997. "SO2 allowance trading: How do expectations and experience measure up?," The Electricity Journal, Elsevier, vol. 10(7), pages 67-75.
    6. Palmer, Karen & Ando, Amy, 1998. "Getting on the Map: The Political Economy of State-Level Electricity Restructuring," RFF Working Paper Series dp-98-19-rev, Resources for the Future.
    7. Dallas Burtraw, 1996. "The So2 Emissions Trading Program: Cost Savings Without Allowance Trades," Contemporary Economic Policy, Western Economic Association International, vol. 14(2), pages 79-94, April.
    8. Burtraw, Dallas & Krupnick, Alan & Austin, David & Farrell, Deirdre & Mansur, Erin, 1997. "The Costs and Benefits of Reducing Acid Rain," RFF Working Paper Series dp-97-31-rev, Resources for the Future.
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    Cited by:

    1. Stowe, Robert C & Stavins, Robert Norman & Chan, Gabriel Angelo & Sweeney, Richard Leonard, 2012. "The SO2 Allowance Trading System and the Clean Air Act Amendments of 1990: Reflections on Twenty Years of Policy Innovation," Scholarly Articles 8160721, Harvard Kennedy School of Government.
    2. Brookshire, David S & Burness, H Stuart, 2001. "The Informational Role of the EPA SO2 Permit Auction," Journal of Regulatory Economics, Springer, vol. 20(1), pages 43-60, July.
    3. Dowlatabadi, Hadi & Boyd, David R. & MacDonald, Jamie, 2004. "Model, Model on the Screen, What's the Cost of Going Green?," Discussion Papers 10806, Resources for the Future.
    4. Norris, Patricia E. & Brown, Elaine M. & Batie, Sandra S., 2002. "An Analysis Of Situation, Structure, Conduct And Performance In Air Emission And Watershed Effluent Markets," Staff Paper Series 11798, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Jensen, Jesper & Rasmussen, Tobias N., 2000. "Allocation of CO2 Emissions Permits: A General Equilibrium Analysis of Policy Instruments," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 111-136, September.
    6. Dowlatabadi, Hadi & Boyd, David & MacDonald, Jamie, 2004. "Model, Model on the Screen, What's the Cost of Going Green?," RFF Working Paper Series dp-04-17, Resources for the Future.

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