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The Costs and Benefits of Reducing Acid Rain

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Author Info
Burtraw, Dallas () (Resources for the Future)
Krupnick, Alan () (Resources for the Future)
Austin, David
Farrell, Deirdre
Mansur, Erin

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Abstract

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 integrated assessment of the benefits and costs of the program, using the Tracking and Analysis Framework (TAF) developed for the National Acid Precipitation Assessment Program (NAPAP). Although dramatic uncertainties characterize our estimates especially with respect to the benefits of the program, many of which we have modeled explicitly, we find that the benefits can be expected to substantially outweigh the costs of the emission reductions. The lion’s share of benefits result from reduced risk of premature mortality, especially through reduced exposure to sulfates, and these expected benefits measure several times the expected costs of the program. Significant benefits are also estimated for improvements in health morbidity, recreational visibility and residential visibility, each of which measures approximately equal to costs. In contrast, areas that were the focus of attention in the 1980s including effects to soils, forests and aquatic systems still have not been modeled comprehensively, but evidence suggests benefits in these areas to be relatively small, at least with respect to "use values" for the environmental assets that are affected.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-97-31-rev.

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Date of creation: 01 Jul 1997
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Handle: RePEc:rff:dpaper:dp-97-31-rev

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  1. Bohi, Douglas R. & Burtraw, Dallas, 1997. "SO2 allowance trading: How do expectations and experience measure up?," The Electricity Journal, Elsevier, vol. 10(7), pages 67-75. [Downloadable!] (restricted)
  2. Jones-Lee, M W & Hammerton, M & Philips, P R, 1985. "The Value of Safety: Results of a National Sample Survey," Economic Journal, Royal Economic Society, vol. 95(377), pages 49-72, March. [Downloadable!] (restricted)
  3. Portney, Paul R, 1990. "Economics and the Clean Air Act," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 173-81, Fall. [Downloadable!] (restricted)
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  1. Stavins, Robert, 2003. "Market-Based Environmental Policies: What Can We Learn from U.S. Experience (and Related Research)?," Discussion Papers dp-03-43, Resources For the Future. [Downloadable!]
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  2. Parry, Ian, 2001. "On the Implications of Technological Innovation for Environmental Policy," Discussion Papers dp-01-44, Resources For the Future. [Downloadable!]
    Other versions:
  3. Parry, Ian & Bento, Antonio, 1999. "Tax deductions, environmental policy, and the"double dividend"hypothesis," Policy Research Working Paper Series 2119, The World Bank. [Downloadable!]
    Other versions:
  4. Burtraw, Dallas & Palmer, Karen & Cropper, Maureen & Carlson, Curtis, 1998. "Sulfur-Dioxide Control By Electric Utilities: What Are the Gains from Trade?," Discussion Papers dp-98-44-rev, Resources For the Future. [Downloadable!]
    Other versions:
  5. Johan Eyckmans & Michael Finus, 2004. "An Empirical Assessment of Measures to Enhance the Success of Global Climate Treaties," Energy, Transport and Environment Working Papers Series ete0406, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment. [Downloadable!]
  6. Parry, Ian & Bento, Antonio, 1999. "Tax Deductible Spending, Environmental Policy, and the "Double Dividend" Hypothesis," Discussion Papers dp-99-24, Resources For the Future. [Downloadable!]
  7. Burtraw, Dallas & Palmer, Karen & Banzhaf, H. Spencer, 2002. "Efficient Emission Fees in the U.S. Electricity Sector," Discussion Papers dp-02-45, Resources For the Future. [Downloadable!]
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  8. Burtraw, Dallas & Palmer, Karen, 2003. "The Paparazzi Take a Look at a Living Legend: The SO2 Cap-and-Trade Program for Power Plants in the United States," Discussion Papers dp-03-15, Resources For the Future. [Downloadable!]
  9. Parry, Ian & Pizer, William & Fischer, Carolyn, 2002. "How Large Are the Welfare Gains from Technological Innovation Induced by Environmental Policies?," Discussion Papers dp-02-57, Resources For the Future. [Downloadable!]
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  10. Burtraw, Dallas, 2000. "Innovation Under the Tradable Sulfur Dioxide Emission Permits Program in the U.S. Electricity Sector," Discussion Papers dp-00-38, Resources For the Future. [Downloadable!]
  11. Erin T. Mansur & Sheila M. Olmstead, 2007. "The Value of Scarce Water: Measuring the Inefficiency of Municipal Regulations," NBER Working Papers 13513, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Burtraw, Dallas & Palmer, Karen & Krupnick, Alan & Toman, Michael & Paul, Anthony & Bloyd, Cary, 2001. "Ancillary Benefits of Reduced Air Pollution in the United States from Moderate Greenhouse Gas Mitigation Policies in the Electricity Sector," Discussion Papers dp-01-61-, Resources For the Future. [Downloadable!]
  13. Burtraw, Dallas & Palmer, Karen & Shih, Jhih-Shyang, 2005. "Reducing Emissions from the Electricity Sector: The Costs and Benefits Nationwide and for the Empire State," Discussion Papers dp-05-23, Resources For the Future. [Downloadable!]
  14. Stavins, Robert, 2007. "Addressing Climate Change with a Comprehensive U.S. Cap-and-Trade System," Working Paper Series rwp07-053, Harvard University, John F. Kennedy School of Government. [Downloadable!]
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  15. Parry, Ian W.H. & Timilsina, Govinda R., 2008. "How Should Passenger Travel in Mexico City Be Priced?," Discussion Papers dp-08-17, Resources For the Future. [Downloadable!]
  16. Coria, Jessica & Sterner, Thomas, 2008. "Tradable Permits in Developing Countries: Evidence from Air Pollution in Santiago, Chile," Discussion Papers dp-08-51, Resources For the Future. [Downloadable!]
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  17. Kruger, Joseph, 2005. "From SO2 to Greenhouse Gases: Trends and Events Shaping Future Emissions Trading Programs in the United States," Discussion Papers dp-05-20, Resources For the Future. [Downloadable!]
  18. Fischer, Carolyn, 2004. "Emissions Pricing, Spillovers, and Public Investment in Environmentally Friendly Technologies," Discussion Papers dp-04-02, Resources For the Future. [Downloadable!]
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  19. Burtraw, Dallas & Toman, Michael, 1997. "The Benefits of Reduced Air Pollutants in the U.S. from Greenhouse Gas Mitigation Policies," Discussion Papers dp-98-01-rev, Resources For the Future. [Downloadable!]
  20. Parry, Ian & Small, Kenneth, 2002. "Does Britain or the United States Have the Right Gasoline Tax?," Discussion Papers dp-02-12-, Resources For the Future. [Downloadable!]
    Other versions:
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