Technological Change for Sulfur Dioxide Scrubbers under Market-Based Regulation

The 1990 Clean Air Act Amendments (CAAA) introduced tradable permits for controlling sulfur dioxide (SO 2 ) emissions from coal-burning power plants and forced scrubbers to compete with other SO 2 abatement options. While the flexibility of permits reduced overall compliance costs, a secondary benef...

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Bibliographic Details
Published in:Land economics 2005-11, Vol.81 (4), p.546-556
Main Authors: Lange, Ian, Bellas, Allen
Format: Article
Language:English
Subjects:
01 COAL, LIGNITE, AND PEAT
02 PETROLEUM
Air pollution
AIR POLLUTION CONTROL
Boilers
Capital costs
Clean Air Act 1990-US
Coal
Compliance costs
COST
Cost efficiency
Costs
DESULFURIZATION
Economic models
Economic theory
Emissions trading
Environmental economics
Environmental management
Environmental regulations
FLUE GAS
Flue gases
Industrial plant emissions
Operating costs
Pollution control
POLLUTION LAWS
POLLUTION REGULATIONS
Power plants
Regulation
SCRUBBERS
Statistical analysis
Studies
Sulfur
SULFUR DIOXIDE
Technological change
USA
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Summary:The 1990 Clean Air Act Amendments (CAAA) introduced tradable permits for controlling sulfur dioxide (SO 2 ) emissions from coal-burning power plants and forced scrubbers to compete with other SO 2 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. (JEL Q52, Q55)
ISSN:0023-7639
1543-8325
DOI:10.3368/le.81.4.546