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Topic 13: Economics of Air and Water Pollution Control David

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Topic 13: Economics of Air and Water Pollution Control David Letson University of Miami Main Points Why Evaluate Past Efforts? Large scale efforts. – PowerPoint PPT presentation

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Title: Topic 13: Economics of Air and Water Pollution Control David


1
Topic 13 Economics of Air and Water Pollution
Control
  • David Letson
  • University of Miami

2
Main Points
  • Clean Air Act
  • Clean Water Act
  • Why Few Incentive Policies?
  • A Look to the Future

3
Why Evaluate Past Efforts?
  • Large scale efforts.
  • US spends 150B/year.
  • Systemic effects in the economy.

4
How to evaluate?
  • Effectiveness
  • Have we met goals?
  • Are these the right goals?
  • Efficiency
  • Maximizing net benefits.
  • Minimizing cost of achieving goals.
  • Improving international competitiveness.

5
Met mandated goals?
  • Macroeconomy.
  • Pollution lower because of CAA/CWA.
  • Most notable decreases
  • emissions to air and in air pollution levels.
  • pollution levels in our surface waters.
  • Nonpoint source problems persist.

6
SO2 tradable permits
  • Savings
  • Title IV of the 1990 CAAAs
  • Performance based standards
  • Phase I versus Phase II
  • Ecosystem and human health benefits

7
Other CAA Concerns
  • new source bias
  • threshold model
  • prevention of significant deterioration
  • Bottom line.
  • CAA benefits of 22 trillion
  • 0.5 trillion in direct compliance expenditures.

8
Clean Water Act (CWA)
  • Mission surface water quality
  • Main goals
  • zero discharges by 1985, and
  • swimmable waters by 1983.

9
Economic Concerns
  • No ambient standards?
  • How do we know where we are going?
  • Nonpoint sources
  • Uniform effluent standards

10
CWA Costs Benefits
  • Swimmable waterbodies too costly.
  • Freshwater fishing and swimming benefits.
  • Less consensus that CWA is worth it.
  • More costly than necessary.
  • Uncertain of our accomplishments.

11
Why few incentive policies?
  • Incentive of public authorities.
  • High transactions costs.
  • Real question is right mix of policies.
  • Existing regulatory structure.

12
A Look to the Future
  • Voluntary programs.
  • More emphasis on source reduction.
  • More emphasis on non-point sources.
  • More use of incentives.
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