Pollution Control ECON 373 March 28 2012 Pollution

Pollution Control ECON 373 March 28, 2012

Pollution Control • Federal Water Pollution Control Policy ▫ Types of pollutants ▫ Regulations ▫ Efficiency effectiveness of the programs • Federal Air Pollution control Policy

Federal Water Pollution Control Policy • Conventional pollutants: ▫ Biochemical oxygen-demanding wastes (BOD), total suspended solids, bacteria, oil, grease and PH • Nonconventional pollutants: ▫ Chemical oxygen demand(COD), total organic carbon, nitrogen and phosphorous • Toxic pollutants: ▫ 65 named in the Clean Water Act chemicals ▫ http: //water. epa. gov/scitech/methods/cwa/pollutantsbackground. cfm

Types of Waterborne Emission • Point sources: industry and domestic wastewater • Nonpoint sources: agricultural runoff of pesticides and fertilizers, chemicals and oils flushed off urban streets • Continuous emission vs. episodic emission

Category of the Pollutants by it’s lasting effects • Persistent pollutant • Degradable pollutants: ▫ BOD: biochemical oxygen demand �The amount of oxygen required to decompose the organic material under specified conditions of temperature and time. �High level of dissolved oxygen are usually associated with high-quality water

Dissolved Oxygen Profile in Water after a BOD Load Has Been Introduced Time or distance

Federal Water Policy: A Brief History

Technology-Based Effluent Standards • TBES is an effluent standard set at the level of emissions that a source would produce if it were employing a particular type of abatement technology

Efficiency and Cost-Effectiveness • Efficient policy: MAC = MD. TBES requires factories in any location to use exactly the same equipment. • Cost-effectiveness: is a question whether society is getting the maximum effect in terms of reduced emissions for the money spent. Unlikely given that there are 600 subcatagories of water-polluting industries under EPA definition but there are tens

Experience with TBESs • How much has the nation’s water quality been improved as a result of the system?

Experience with TBESs • How bad has the cost-effectiveness problem been? • 19 studies found the ratio of TBES to Least-Cost Control system ranges from 1. 12 -3. 13

TBESs and Incentives • End-of-the pipe regulation

TBESs and Enforcement • Initial compliance, Yes • Continued compliance, ?

Federal Air Pollution Control Policy • Many potential air pollutants ▫ ▫ ▫ ▫ Oxides of carbon Nitrogen Sulfur Volatile organic compounds Suspended particulate matter Photochemical oxidant Radioactivity

Federal Air Pollution Control Laws

National Ambient Air Quality Standards • http: //www. epa. gov/air/criteria. html

Stationary and Mobile Sources of Criteria Pollutants Emissions (million tons) Carbon monoxide Stationary Mobile Nitrogen oxide Stationary Mobile Volatile organic compounds Stationary Mobile Sulfure dioxide Stationary Mobile Particulate Matter (PM 10) Stationary Mobile Lead Stationary 1970 1980 1990 2002 2006 29. 4 174. 6 24. 9 160. 5 22. 5 131. 7 25. 4 86. 6 22. 6 78 11. 5 15. 3 12. 3 14. 8 12. 1 13. 4 9. 6 11. 5 7. 6 10. 6 16. 1 18. 5 15. 1 16 12 12. 1 9. 3 7. 2 11. 1 6. 2 30. 6 25. 2 0. 7 22. 2 0. 9 14. 7 0. 7 13. 1 0. 6 12. 4 0. 6 6. 3 0. 7 27. 1 0. 7 21. 6 0. 5 18 0. 4 39. 2 9. 5 3. 8 3. 7 N/A

Stationary and Mobile Sources of Criteria Pollutants 45 40 35 30 Carbon monoxide Nitrogen oxide 25 Volatile organic compounds Sulfure dioxide 20 Particulate Matter (PM 10) Lead 15 10 5 0 1970 1980 1990 2002 2006

Stationary-Source Control • Technology-based effluent standards ▫ BACT: Best available control technology ▫ LAER: Lowest achievement emission rates ▫ RACT: reasonably available control technology • Cost-Effectiveness of TBES ▫ 11 studies shows the Ratio of CAC Costs to Least Cost ranges from 1. 07 -22. 00

New Directions in Stationary-Source Control • Cap-and-trade (CAP) ▫ Regional Clean Air Incentive Market (RECLAIM) in 1993 ▫ 1990 Acid Rain program under CAAA ▫ NOx emission trading program in 13 NE states in 1999

The CAP Program of the 1990 CAA • Two phases ▫ Phase I: 1995 -2000, involving 110 electric power plants ▫ Phase II: begins in 2000 includes 1000 power plants • Time profile of discharge permits ▫ Phase I: 2. 5 pounds of SO 2 per million BTUs multiply by the average annual fuel consumed from 1985 -1987 ▫ Phase II: 1. 2 pounds …

Has ARP program worked?

SO 2 by State

SO 2 Permit Prices

ETS CO 2 Permit Price

Mobile Source Air Pollutant Control •

CAFE Standards • CAFE standards: Corporate Average Fuel Economy Program • Goal: Aim to require automakers to enhance fuel efficiency

CAFE Standards

Cafe Standards • 1) Separate MPG standards for all cars and light trucks • 2) Key here is average: not a standard for all cars for fleet average • 3) Standards have increased: 18 mpg (1978) to 27. 5 mpg (1985). 29 mpg in 2010 proposed to 56 mpg by 2025 • Separate Cafe calculation for domestic and foreign fleets

CAFE Standards

CAFE Standards