Cover image for Markets for clean air : the U.S. acid rain program
Markets for clean air : the U.S. acid rain program
Ellerman, A. Denny.
Publication Information:
Cambridge, UK ; New York, NY : Cambridge University Press, 2000.
Physical Description:
xxi, 362 pages : illustrations ; 24 cm
Market-based experiment -- A political history of federal acid rain legislation -- The political economy of allowance allocations -- The pre-1995 trend in SO₂ emissions -- Title IV compliance and emission reductions, 1995-97 -- Emissions trading: the effect on abatement behavior -- Emissions trading: development of the allowance market -- Title IVs voluntary compliance program -- Cost of compliance with title IV in phase I -- Cost savings from emissions trading -- Errors, imperfections, and allowance prices -- Concluding observations.
Added Author:
Format :


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HC110.A4 M37 2000 Adult Non-Fiction Central Closed Stacks

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A comprehensive description and evaluation of the first three years of the U.S. Acid Rain Program. This environmental control program is the world's first large-scale use of a tradeable emission permit system for achieving environmental goals. The book analyzes the behavior and performance of the market for emissions permits, known as allowances, and quantifies emission reductions, compliance costs, and cost savings associated with the trading program. The book also includes chapters on the historical context in which this pioneering program developed and the political economy of allowance allocations. Finally, the book discusses the program's successes, its weaknesses, and the lesson learned regarding application of the emissions-trading approach to controlling other types of emissions, including greenhouse gases. The volume is an indispensable addition to the library of all interested in the application of marker principles for meeting environmental goals.

Reviews 1

Choice Review

The praise used to market this book accurately assesses it. It is the "definitive," "most thorough and careful," and "authoritative" analysis of the sulfur dioxide allowance-trading program. The authors, all of whom were at MIT's Center for Energy and Environmental Policy, integrate five years of research into a coherent analysis that supports the program's economic efficiency. The authors proceed step-by-step by examining compliance with the program, relating allowance trading with emission abatement, and examining the allowance trading market before analyzing compliance costs and the cost savings from allowance trading. At each step, they use rigorous microeconomic and careful econometric analysis to examine the relevant issues. They carefully weave themes developed early--such as their interesting analysis of the initial allocation of sulfur dioxide allowances and the impacts of lower rail rates on the price of low-sulfur coal--into the remainder of the analysis, and their conclusions are clearly developed and carefully supported. This book will appeal to those interested in environmental policy, regulatory analysis, investment decisions, and political economy. The writing and analyses are accessible to upper-division undergraduates and wonderful examples for graduate students; they will inspire new research efforts. D. Martin; Davidson College

Table of Contents

List of illustrations
List of tables
1 A market-based experiment
2 A political history of Federal Acid Rain Legislation
3 The political economy of allowance allocations
4 The pre-1995 trend in SO2 emissions
5 Title IV compliance and Emission reductions, 1995-97
6 Emissions trading: the effect on abatement behavior
7 Emissions trading: development of the allowance market
8 Title IV's voluntary compliance program
9 The cost of compliance with the Title IV in Phase I
10 Cost savings from emissions trading
11 Errors, imperfections, and allowance prices
12 Concluding observations