Economic Implications of Emissions Trading Rules for Local and Regional Pollutants
In 1975 the United States Environmental Protection Agency initiated an historic process of regulatory reform, now known as the Emissions Trading Program. For nonuniformly-mixed pollutants, such as sulfur dioxides, air quality is a function not only of the level of emissions, but their location and stack heights as well. The focus of this paper is how to protect local air quality and limit long-range pollutant deposition caused by emission trades, while allowing as much cost-reducing trading activity as possible. The authors examine the implications of two trading rules in two different airsheds using programming simulation models. They find that the use of either trading rule represents a substantial improvement over relying exclusively on the current allocation of control responsibility.
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Volume (Year): 20 (1987)
Issue (Month): 2 (May)
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