The Unintended Disincentive in the Clean Air Act
AbstractThe Clean Air Act and its subsequent amendments have been lauded as the primary stimulant to the impressive improvement in local air quality in the US since 1970. A key component of these regulations is the New Source Review (NSR) requirement, which includes the contentious stipulation that when an existing plant seeks to modify its operations, the entire plant must comply with current standards for new sources. This requirement was included to improve air quality in dirty areas, and prevent a deterioration of air quality in clean areas. Yet, whether NSR provides the proper plant-level incentives is unclear: there are strong disincentives to undertake major plant modifications to avoid NSR. In our examination of more than 2500 and 2200 plant-level modification decisions and closures, respectively, we find empirical evidence suggesting that NSR retards modification rates, while doing little to hasten the closure of existing dirty plants.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.
Volume (Year): 3 (2004)
Issue (Month): 2 (February)
Contact details of provider:
Web page: http://www.degruyter.com
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jeffery Flory & Uri Gneezy & Kenneth Leonard & John List, 2012. "Sex, competitiveness, and investment in offspring: On the origin of preferences," Artefactual Field Experiments 00072, The Field Experiments Website.
- Hanna Rema Nadeem & Oliva Paulina, 2010. "The Impact of Inspections on Plant-Level Air Emissions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-33, March.
- Morgan, O. Ashton & Condliffe, Simon, 2009.
"Spatial Heterogeneity in Environmental Regulation Enforcement and the Firm Location Decision among U.S. Counties,"
The Review of Regional Studies,
Southern Regional Science Association, vol. 39(3), pages 239-52.
- O. Ashton Morgan & Simon Condliffe, 2009. "Spatial Heterogeneity in Environmental Regulation Enforcement and the Firm Location Decision among U.S. Counties," Working Papers 09-12, Department of Economics, Appalachian State University.
- List, John A. & McHone, W. Warren & Millimet, Daniel L., 2004. "Effects of environmental regulation on foreign and domestic plant births: is there a home field advantage?," Journal of Urban Economics, Elsevier, vol. 56(2), pages 303-326, September.
- Nathaniel Keohane & Erin T. Mansur & Andrey Voynov, 2007.
"Averting Regulatory Enforcement: Evidence from New Source Review,"
NBER Working Papers
13512, National Bureau of Economic Research, Inc.
- Nathaniel O. Keohane & Erin T. Mansur & Andrey Voynov, 2009. "Averting Regulatory Enforcement: Evidence from New Source Review," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 75-104, 03.
- James B. Bushnell & Howard Chong & Erin T. Mansur, 2009.
"Profiting from Regulation: An Event Study of the EU Carbon Market,"
NBER Working Papers
15572, National Bureau of Economic Research, Inc.
- Bushnell, James & Chong, Howard G. & Mansur, Erin T., 2009. "Profiting from Regulation: An Event Study of the EU Carbon Market," Staff General Research Papers 13139, Iowa State University, Department of Economics.
- Bushnell, James & Mansur, Erin T. & Chong, Howard G., 2010. "Profiting from Regulation: An Event Study of the EU Carbon Market," Staff General Research Papers 32737, Iowa State University, Department of Economics.
- Anthony Heyes, 2009. "Is environmental regulation bad for competition? A survey," Journal of Regulatory Economics, Springer, vol. 36(1), pages 1-28, August.
- Michael Greenstone & John A. List & Chad Syverson, 2011.
"The Effects of Environmental Regulation on the Competiveness of U.S. Manufacturing,"
11-03, Center for Economic Studies, U.S. Census Bureau.
- Michael Greenstone & John A. List & Chad Syverson, 2012. "The Effects of Environmental Regulation on the Competitiveness of U.S. Manufacturing," NBER Working Papers 18392, National Bureau of Economic Research, Inc.
- Ian Lange & Joshua Linn, 2008.
"Bush v. Gore and the Effect of New Source Review on Power Plant Emissions,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 40(4), pages 571-591, August.
- Ian Lange & Josh Linn, 2006. "Bush v. Gore and the Effect of New Source Review on Power Plant Emissions," Working Papers UWEC-2007-02, University of Washington, Department of Economics.
- Adair, Sarah K. & Hoppock, David C. & Monast, Jonas J., 2014. "New Source Review and coal plant efficiency gains: How new and forthcoming air regulations affect outcomes," Energy Policy, Elsevier, vol. 70(C), pages 183-192.
- Bushnell, James & Wolfram, Catherine, 2008.
"Enforcement of Vintage Differentiated Regulations: The Case of New Source Review,"
Staff General Research Papers
31185, Iowa State University, Department of Economics.
- Bushnell, James & Wolfram, Catherine, 2010. "Enforcement of Vintage Differentiated Regulations: The Case of New Source Review," Staff General Research Papers 31805, Iowa State University, Department of Economics.
- John List, 2013. "Using field experiments to change the template of how we teach economics," Artefactual Field Experiments 00389, The Field Experiments Website.
- Patino Echeverri, Dalia & Burtraw, Dallas & Palmer, Karen, 2012. "Flexible Mandates for Investment in New Technology," Discussion Papers dp-12-14, Resources For the Future.
- Sánchez-Braza, Antonio & Pablo-Romero, María del P., 2014. "Evaluation of property tax bonus to promote solar thermal systems in Andalusia (Spain)," Energy Policy, Elsevier, vol. 67(C), pages 832-843.
- Heutel, Garth, 2011. "Plant vintages, grandfathering, and environmental policy," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 36-51, January.
- Wright, Christopher, 2006. "Estimating the Effect of the Chesapeake Bay Program on Application Rates for Enrollment in the Environmental Quality Incentive Program: A Case Study of Pennsylvania," 2006 Annual meeting, July 23-26, Long Beach, CA 21164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Calcott, Paul, 2012. "Regulatory triggers and New Source Review," Resource and Energy Economics, Elsevier, vol. 34(3), pages 337-348.
- Douglas A. Carr, 2011. "The Intergovernmental Fiscal Effects of the Clean Air Act," Public Finance Review, , vol. 39(6), pages 810-830, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.