Acid rain control and United States energy policy

Abstract

The U.S. Congress is currently considering whether to legislate a control program to reduce the perceived effects of acid rain. The effects of such a program would be costly, wide-ranging and would have important implications for the development of U.S. energy policy over the next several decades. The proposals call for reductions of between 30 and 50% in emissions of SO 2 in the eastern U.S. Costs of achieving these reductions are estimated to be in the range of $4–12 billion annually over the next 20 yr or so. In addition to the obvious economic impacts, there will be major energy implications, arising from shifts in the patterns of U.S. coal production and consumption; coal resource, transportation and employment effects; electricity price increases; changes in electric utility system mix; effects on manufacturing industries; and penetration of innovative energy technology. The anticipated effects of acid rain control programs in these areas are discussed, together with creative new ways to address the acid rain issue, including targeted control strategies, emissions bubbling and early retirement.