ATM S 212 Discussion Worksheet
Work in groups of 2 to 3 and feel free to discuss any questions with other groups or the
professor.
In the first wee of class we discussed the use of a cost-benefit analysis for air pollution,
i.e. by taking into account how much the consequences of air pollution cost versus the
cost of implementing new air quality regulation. Several years ago there were three
competing proposals considered by Congress for amendment to the Clean Air Act to curb
emissions of nitrogen oxides (NOx), sulfur dioxide (SO2) and mercury (Hg):
• Plan A - Clear Skies, introduced by the Bush administration
• Plan B - Clean Air Planning, introduced by Senator Carper, Democrat of
Delaware
• Plan C - Clean Power Act, introduced by Senator Jeffords, Independent of
Vermont
The Environmental Protection Agency (EPA) has conducted a cost-benefit analysis of
these three proposals for the year 2010, and in class today we will do the same and
discuss the results.
The table below shows the emission caps imposed on electric utilities for each of these
plans, the next 2 pages contain worksheets that will allow you to fill in the costs and
health benefits in the table below.
The costs of regulation are calculated in Table A.
The health benefits are calculated in Table B.
Clear Skies (A)
Clean Air Planning (B)
Clean Power Act (C)
Current Legislation
SO2: 4.5 million tons SO2: 4.5 million tons
SO2: 2.25 million tons
SO2: 10 million tons
NOx: 2.2 million tons NOx: 1.9 million tons NOx: 1.5 million tons NOx: 3.8 million tons
Hg: 34 tons
Hg: 24 tons
Hg:
5 tons
Hg:
50 tons
2010
emissions
caps for
electric
utilities
Cost of
regulation
2.8 billion dollars/year
10.6 billion dollars/year
41 billion dollars/year
Health
benefits
75 billion dollars/year
123 billion dollars/year
155 billion dollars/year
Disc