Sulfur Dioxide Control by Electric Utilities: What Are the Gains from Trade?

@article{Carlson2000SulfurDC,
  title={Sulfur Dioxide Control by Electric Utilities: What Are the Gains from Trade?},
  author={Curtis Carlson and Dallas Burtraw and Maureen L. Cropper and Karen L. Palmer},
  journal={Journal of Political Economy},
  year={2000},
  volume={108},
  pages={1292 - 1326}
}
Title IV of the 1990 Clean Air Act Amendments (CAAA) established a market for transferable sulfur dioxide (SO2) emission allowances among electric utilities. This market offers firms facing high marginal abatement costs the opportunity to purchase the right to emit SO2 from firms with lower costs, and this is expected to yield cost savings compared to a command‐and‐control approach to environmental regulation. This paper uses econometrically estimated marginal abatement cost functions for power… Expand
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References

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Electric utilities can reduce sulfur dioxide emissions through a variety of strategies such as adding scrubbers, switching to low- sulfur coal, or shifting output between generating plants with… Expand
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Environmental regulations set maximum allowable rates for sulfur dioxide emissions from electric utilities. By ignoring firm differences in marginal abatement costs and preventing emissions trading,… Expand
The Declining Trend in Sulfur Dioxide Emissions: Implications for Allowance Prices☆
Abstract In this paper, we find that sulfur dioxide (SO 2 ) emissions by electric utilities declined from 1985 to 1993 for reasons largely unrelated to the emission reduction mandate of Title IV of… Expand
THE SO2 EMISSIONS TRADING PROGRAM: COST SAVINGS WITHOUT ALLOWANCE TRADES
Title IV of the 1990 amendments to the Clean Air Act initiated a historic experiment in incentive‐based environmental regulation by permitting electric generating facilities to trade allowances for… Expand
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Abstract The Clean Air Act Amendments of 1990 require electric utilities to reduce sulfur dioxide emissions and establishes a system of tradeable emission allowances to achieve this objective. This… Expand
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Abstract This paper explores the economic impacts of regulatory and legislative intervention in the Clean Air Act Amendment's sulfur dioxide (SO2) allowance trading market. This intervention is of… Expand
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Title IV of the 1990 Clean Air Act Amendments initiated a dramatic reduction in emissions of sulfur dioxide and nitrogen oxides by electric power plants. This paper presents the results of an… Expand
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The 1990 Clean Air Act Amendments initiated a dramatic reduction in emissions of sulfur dioxide and nitrogen oxides by electric power plants. This paper presents the results of an integrated… Expand
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