Environmental Economics

Enforcement Economics in Air Pollution Control

The effects of alternative enforcement strategies on the pollution control activities of the firm are investigated. There are a number of tradeoffs available to a firm including delay and non-compliance which allow it to minimize expected pollution control costs. These are identified within the context of a generalized behavioral model for the firm and an empirical study is undertaken to determine their importance.

In a simulation of current enforcement of the federal new source particulate matter discharge standard for coal-fired power plants it is found that cost-minimizing power plants will install relatively costly pollution control technology and frequently violate federal fly ash standards. Two alternative enforcement strategies for overcoming these shortcomings, namely compliance tests in combination with emission taxes and emission taxes alone, are analyzed.

In the case of the federal fly ash discharge standard for coal-fired power plants it is tentatively concluded that emission tax enforcement would probably result in an approximate minimization of the sum of firm and enforcement agency resource costs. The general applicability of this result to other enforcement problems is discussed.

  • Keywords

    Subject:
    2. Cost-Benefit and Cost Effectiveness Analysis
    4. Economic Incentives and Other Innovative Approaches
    2. Cost-Benefit and Cost Effectiveness Analysis - Enforcement and Monitoring
    4. Economic Incentives and Other Innovative Approaches - Pollution Fees/Charges/Taxes
    Environmental Media:
    a. Air
    a. Air - Stationary Source
    Authors:
    Downing , Paul B.
    Watson, William D.
    EPA Project Officer/ Manager:
    Downing, Paul
    Geographic Area:
    United States
    Study Purpose:
    Empirical Application, Policy Evaluation
    Inventory Record #: EE-0169
  • Participating Organizations

    Research Organization:

    Environmental Protection Agency, Office of Research and Development, Washington Environmental Research Center,
    Implementation Research Division
    Address:
    City: Washington State: DC ZIP: 20460
    Phone: Fax:
    E-mail:
    Funding Organization:
    Environmental Protection Agency, Office of Research and Development,
    Washington Environmental Research Center,
    Implementation Research Division
    Address:
    City: Washington State: DC ZIP: 20460
    Phone: Fax:
    E-mail:
  • Report Details
    Type:
    Final
    Date:
    12/01/1973
    Number of Pages:
    113
    Comment:
    EPA #:
    NTIS #:
    EPA-600/5-73-014
    PB240963
  • How to Obtain Report


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    By World Wide Web: [http://www.ntis.gov].
    You will need the following NTIS report #: PB240963