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Innovation Under the Tradable Sulfur Dioxide Emission Permits Program in the U.S. Electricity Sector AgEcon
Burtraw, Dallas.
The 1990 U.S. Clean Air Act Amendments (CAAA) instituted a national program in tradable sulfur dioxide (SO2) emission permits, referred to as "emission allowances," in the U.S. electricity sector. This paper provides a survey and assessment of the SO2 allowance trading program with a focus on the role of innovation. Over the last decade the cost of compliance has fallen dramatically compared with most expectations, and today the total cost of the program is 40-140% lower than projections (depending on the timing of those projections and the counter-factual baseline considered). Marginal costs of reductions are less than one-half the cost considered in most analyses at the time the program was introduced. Innovation accounts for a large portion of these...
Tipo: Working or Discussion Paper Palavras-chave: Innovation; Incentive-based regulation; SO2 trading; Clean Air Act Amendments; Environmental Economics and Policy; O31; Q25.
Ano: 2000 URL: http://purl.umn.edu/10599
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State-Level Policies and Regulatory Guidance for Compliance in the Early Years of the SO2 Emission Allowance Trading Program AgEcon
Lile, Ronald D.; Burtraw, Dallas.
The Clean Air Act Amendments (CAAA) of 1990 instituted a historic experiment in emission allowance trading for sulfur dioxide (SO2). A necessary requirement for evaluating this experiment is an understanding of how the cost recovery rules and other guidance given to firms by state-level public utility commissions (PUCs) and elected bodies has affected compliance behavior. From the onset of the CAAA, there has been varied response by state policy-makers toward SO2 compliance. This paper presents a compilation of these actions as they took shape in states that were affected by the SO2 program. Our primary interest is on the proposals that emerged during the embryonic years of the allowance program, from 1990 to 1993, when investment plans for utilities...
Tipo: Working or Discussion Paper Palavras-chave: Clean Air Act Amendments; Sulfur dioxide; Allowance trading; Regulation; Electricity; Public utility commissions; Environmental Economics and Policy; H43; Q2; Q4.
Ano: 1998 URL: http://purl.umn.edu/10828
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The SO2 Allowance Trading System and the Clean Air Act Amendments of 1990: Reflections on Twenty Years of Policy Innovation AgEcon
Chan, Gabriel; Stavins, Robert N.; Stowe, Robert; Sweeney, Richard.
The introduction of the U.S. SO2 allowance-trading program to address the threat of acid rain as part of the Clean Air Act Amendments of 1990 is a landmark event in the history of environmental regulation. The program was a great success by almost all measures. This paper, which draws upon a research workshop and a policy roundtable held at Harvard in May 2011, investigates critically the design, enactment, implementation, performance, and implications of this path-breaking application of economic thinking to environmental regulation. Ironically, cap and trade seems especially well suited to addressing the problem of climate change, in that emitted greenhouse gases are evenly distributed throughout the world’s atmosphere. Recent hostility toward cap and...
Tipo: Working Paper Palavras-chave: Cap-and-Trade; Market-Based Environmental Policy; Acid Rain; Sulfur Dioxide; Clean Air Act Amendments; Environmental Economics and Policy; Q520; Q550; Q580.
Ano: 2012 URL: http://purl.umn.edu/121722
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