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Technological Change for Sulfur Dioxide Scrubbers under Market-Based Regulation

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Author Info
Ian Lange
Allen Bellas

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Abstract

The 1990 Clean Air ActAmendments (CAAA) introduced tradable permits for controlling sulfur dioxide (SO2) emissions from coal-burning power plants and forced scrubbers to compete with other SO2 abatement options. While the flexibility of permits reduced overall compliance costs, a secondary benefit would exist if there were resulting advances in scrubber technology. A hedonic model is used to estimate the effect of changing regulatory regimes on scrubber costs. While scrubbers installed under the 1990 CAAA are cheaper to purchase and operate than older scrubbers, these cost reductions seem to be a one-time drop rather than a continual decline.

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File URL: http://le.uwpress.org/cgi/reprint/81/4/546
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Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 81 (2005)
Issue (Month): 4 ()
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Handle: RePEc:uwp:landec:v:81:y:2005:i:4:p546-556

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Find related papers by JEL classification:
Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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This page was last updated on 2009-12-19.

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