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Greenhouse Gas Regulation under the Clean Air Act: Structure, Effects, and Implications of a Knowable Pathway

Author

Listed:
  • Richardson, Nathan

    () (Resources for the Future)

  • Fraas, Arthur G.

    () (Resources for the Future)

  • Burtraw, Dallas

    () (Resources for the Future)

Abstract

It appears inevitable, absent legislative intervention, that regulation under the Clean Air Act (CAA) will move beyond mobile sources to the industrial and power facilities that emit most U.S. greenhouse gas (GHG) emissions. We analyze the mechanisms available to the EPA for regulating such sources, and identify one, New Source Performance Standards (NSPS) as the most predictable, likely, and practical, i.e. knowable, pathway. Based on the legal structure of the NSPS and the EPA’s traditional approach, we analyze a hypothetical GHG NSPS for one sector, coal electricity generation. This analysis indicates that efficiency improvements and perhaps biomass cofiring could be implemented through the NSPS, yielding modest but meaningful emissions reductions. Trading could also rein in costs. Though analysis is limited to one sector and does not include modeling of costs, it suggests that CAA regulation, though inferior to comprehensive climate legislation, could be a useful tool for regulating stationary-source GHGs.

Suggested Citation

  • Richardson, Nathan & Fraas, Arthur G. & Burtraw, Dallas, 2010. "Greenhouse Gas Regulation under the Clean Air Act: Structure, Effects, and Implications of a Knowable Pathway," Discussion Papers dp-10-23, Resources For the Future.
  • Handle: RePEc:rff:dpaper:dp-10-23
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    File URL: http://www.rff.org/RFF/documents/RFF-DP-10-23.pdf
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    Cited by:

    1. Meera Fickling, 2010. "North America’s Uphill Battle on Climate Change and Its Implications for the North American Trading System," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(4), pages 45-51, December.

    More about this item

    Keywords

    climate policy; efficiency; EPA; Clean Air Act; NAAQS; coal;

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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