9 PPT_SO2

9 PPT_SO2 - SO2 Emissions Trading Background Title IV of...

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SO2 Emissions Trading Background •Title IV of 1990 Clean Air Act Amendments established the first large-scale long-term environmental program to rely on tradeable emissions permits to control pollution. •Designed to cut acid rain by decreasing SO2 (sulfur dioxide) from electric generating plants to about ½ their 1980 level, beginning in 1995 •Before the market was set up, the EPA predicted that the cost of reducing SO2 would be $750 per ton . Industry representatives argued that it would be $1,500 per ton.
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SO2 Emissions Trading How it worked •Title IV capped SO2 emissions in stages: Phase 1: 1995-1999 Capped aggregate emissions from the 263 dirtiest large generating plants (known as “Table A” units). Other plants could voluntarily be brought under Phase I. The advantage was that they could substitute less costly reductions of other units for Table A units. Phase 2: 2000 – on All electric generating plants faced a cap. •In both phases, owners of plants were given a
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This note was uploaded on 09/08/2008 for the course ECON 130 taught by Professor Staff during the Winter '08 term at UCSD.

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9 PPT_SO2 - SO2 Emissions Trading Background Title IV of...

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