Learning From an Acid Rain Program

Markets for Clean Air is the definitive text on the U.S. acid rain program. This innovative program uses a cap-and-trade approach, rather than the traditional command-and-control approach, to reduce sulfur dioxide emissions. The authors conclude that the program was successful in cutting the costs of SO2 emission reductions by about half, saving tens of billions of dollars. Both scholars and policy makers will have a better sense of the virtues and pitfalls of market-based regulation after reading this.

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A New Approach to Water Quality Trading: Applying Lessons from the Acid Rain Program to the Lower Boise River Watershed

Environmental Practice ◽

10.1017/s1466046604000468 ◽

2004 ◽

Vol 6 (4) ◽

pp. 281-295 ◽

Cited By ~ 14

Author(s):

Claire Schary ◽

Karen Fisher-Vanden

Keyword(s):

Water Quality ◽

Acid Rain ◽

Water Quality Trading ◽

New Approach ◽

River Watershed ◽

Acid Rain Program

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Global CO2 emissions trading: Early lessons from the U.S. acid rain program

Climatic Change ◽

10.1007/bf01093226 ◽

1995 ◽

Vol 30 (1) ◽

pp. 75-96 ◽

Cited By ~ 12

Author(s):

Barry D. Solomon

Keyword(s):

Acid Rain ◽

Co2 Emissions ◽

Emissions Trading ◽

Acid Rain Program ◽

The U.S

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An Interim Evaluation of Sulfur Dioxide Emissions Trading

The Journal of Economic Perspectives ◽

10.1257/jep.12.3.53 ◽

1998 ◽

Vol 12 (3) ◽

pp. 53-68 ◽

Cited By ~ 225

Author(s):

Richard Schmalensee ◽

Paul L Joskow ◽

A. Denny Ellerman ◽

Juan Pablo Montero ◽

Elizabeth M Bailey

Keyword(s):

Sulfur Dioxide ◽

Acid Rain ◽

Large Scale ◽

Emissions Trading ◽

Tradeable Permits ◽

Abatement Costs ◽

Sulfur Dioxide Emissions ◽

Acid Rain Program ◽

The U.S

This paper summarizes recent empirical research on compliance costs and strategies and on permit market performance under the U.S. acid rain program, the first large-scale, long-term program to use tradeable emissions permits to control pollution. An efficient market for emissions permits developed in a few years, and this program more than achieved its early goals on time, and it cost less than had been projected. Because of expectation errors, however, investment was excessive, and permit prices substantially understate abatement costs. The tradeable permits approach has worked well, but it is not a miracle cure for environmental problems. Coauthors are Paul L. Joskow, A. Denny Ellerman, Juan Pablo Montero, and Elizabeth M. Bailey.

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