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Will The Market in Emission Allowances Work?

by Roger K. Raufer, Univ of Pennsylvania, Philadelphia, United States,



Document Type: Proceeding Paper

Part of: Energy in the 90's

Abstract:

The Clean Air Act Amendments of 1990 introduce a major new control program to mitigate the impacts of acid rain. The control program, which has been under debate for approximately a decade, takes a strong market-oriented regulatory approach to pollution control. Many utility observers remain unconvinced that the mechanisms outlined in the Act will work, however. This paper discusses a number of factors likely to play a role in this new market development, and suggests that -- despite legitimate concerns -- the market will function.

Subject Headings: Air pollution | Acid rain | Business management | Legislation | Emissions | Air quality | Utilities

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