In terms of the political calculus, GHG regulation faces an uncertain future, at least into 2013. And as a flood of cheap gas erodes the perception of an impending environmental crisis,...
A Multi-Pollutant Strategy
An integrated approach could prove more effective for controlling emissions.
to supplement regional reductions from trading.
The Road Ahead
These lessons might prove useful to stakeholders in working with EPA, States and Congress towards a widely acceptable multi-pollutant strategy. Past proposals were not as far apart as one would expect in core program elements, including significant emission reductions and utilization of some degree of emissions trading. This suggests that the time has come to recognize these commonalities and bridge the gaps on the remaining issues. There remains enormous promise in the benefits of a meaningful market-based multi-pollutant control strategy.
1. Calculated from Greenbook (www.epa.gov/oar/oaqps/greenbook/qncl3.html). The 2000 Census is the source of the population data. Areas included in the estimate are those that are nonattainment for either 8-hour ozone or PM2.5 as of Aug. 15, 2008 (the most recently available status update).
2. Mercury Study Report to Congress , U.S. Environmental Protection Agency, December 1997, EPA-452/R-97-003.
3. Analyses available at http://www.epa.gov/climatechange/economics/economicanalyses.html.
4. EPA’s Clean Air Power Initiative , Office of Air and Radiation, U.S. Environmental Protection Agency, October 1996.
5. Using 2005 monitoring data, CAPI’s rate-based NOx cap would have capped summertime NO x emissions between 0.99 and 0.7 million tons.
6. Better Approaches to Cleaner Air from Electricity Generation , Presentation on EPA’s Clean Air Power Initiative by Office of Air and Radiation, U.S. EPA, April 1997, 5th US-Dutch Symposium on Air Pollution in the 21st Century.
7. Better Approaches to Cleaner Air from Electricity Generation , Sam Napolitano, Brian McLean, John Bachmann and Linda Reidt Critchfield for the 5th U.S. Dutch International Symposium, Air Pollution in the 21st Century, April 1997.
8. A Potential Integrated Approach to Emissions Reductions from the Electricity Power Industry , Staff Hypothetical Option Presentation, U.S. Environmental Protection Agency, May 18, 1999.
9. Analysis of the Acid Deposition and Ozone Control Act (S. 172) , Clean Air Markets Division, Office of Air and Radiation, U.S. Environmental Protection Agency, July 2000 Draft. This benefits calculation arises from EPA’s primary benefits methodology (value of a statistical life or VSL approach). An alternative, age-adjusted approach (value of a statistical life year or VSLY approach) results in monetized benefits of $46.7 billion in 2010.
10. EPA Clear Skies: Health and Environmental Benefits ( www.epa.gov/air/clearskies/benefits.html); values are expressed in terms of 2007$, inflated from 1999$ using the GDP deflator.
11. Emissions, benefits, and costs are available from the 2005 Multi-Pollutant Analysis . Values are expressed in terms of 2007$, inflated from 1999$ using the GDP deflator.
12. Regulatory Impact Analysis for the Final Clean Air Interstate Rule , U.S. Environmental Protection Agency, Office of Air and Radiation, EPA-452/R-05-002 .
13. Sources include: EPA’s Clean Air Power Initiative , Office of Air and Radiation, U.S. Environmental Protection Agency, October 1996; Analysis of Emissions Reduction Options for the Electric Power Industry, Office of Air and Radiation, U.S. Environmental Protection Agency, March 1999; 2002 and 2003 Technical Support Packages for Clear Skies ; EPA’s 2005 Multi-Pollutant Legislative Analysis ; Regulatory Impact Analysis for the