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Economic Incentives for Pollution Control

Since its first days in office, the Clinton Administration has expressed strong support for greater reliance on economic incentives in environmental management. Having witnessed the success of the acid rain control program, policy makers are convinced that similar approaches can work in other environmental policy areas.

As discussed in Section 6, experiences with the acid rain control program are very positive to date, showing that environmental protection can be achieved at less cost than previously believed. Not only have pollution abatement costs been much less than expected, the magnitude of emissions reductions has significantly exceeded requirements to date. Moreover, recent scientific evidence indicates that the health benefits are far greater than originally forecast.

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