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Multipollutant Efficiency Standards For Electricity Production

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  • PETER M. SCHWARZ

Abstract

This study contains a simulation of a coal‐fired electric plant subject to multiple pollutant standards for SO2 and NOx. It shows that firms may not choose the lowest cost technology. The firm's cost‐minimizing choice is compared for three increasingly stringent standards: the 1990 Clean Air Act Amendments, the 1997 New Source Performance Standards, and the 2002 North Carolina Clean Smokestacks Act. The study finds support on cost‐benefit grounds for the 2002 North Carolina standard, which is the most stringent standard, but not for the 1997 NSPS. (JEL Q28, Q25, L94)

Suggested Citation

  • Peter M. Schwarz, 2005. "Multipollutant Efficiency Standards For Electricity Production," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 341-356, July.
    • Handle: RePEc:bla:coecpo:v:23:y:2005:i:3:p:341-356
    DOI: 10.1093/cep/byi026
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    References listed on IDEAS

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    1. Gunnar S. Eskeland, 1997. "Air Pollution Requires Multipollutant Analysis: The Case of Santiago, Chile," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1636-1641.
    2. Montero, Juan-Pablo, 2001. "Multipollutant Markets," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 762-774, Winter.
    3. Yaisawarng, Suthathip & Klein, J Douglass, 1994. "The Effects of Sulfur Dioxide Controls on Productivity Change in the U.S. Electric Power Industry," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 447-460, August.
    4. Burtraw, Dallas & Palmer, Karen L. & Bharvirkar, Ranjit & Paul, Anthony, 2001. "Cost-Effective Reduction of NOx Emissions from Electricity Generation," Discussion Papers 10677, Resources for the Future.
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    Cited by:

    1. James Cochell & Peter Schwarz & Thomas Taylor, 2012. "Using real-time electricity data to estimate response to time-of-use and flat rates: an application to emissions," Journal of Regulatory Economics, Springer, vol. 42(2), pages 135-158, October.

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    More about this item

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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