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Books > Business & Economics > Business & management > Ownership & organization of enterprises
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Economic Innovations in Public Utility Regulation (Paperback, Softcover reprint of the original 1st ed. 1992)
Loot Price: R4,193
Discovery Miles 41 930
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Economic Innovations in Public Utility Regulation (Paperback, Softcover reprint of the original 1st ed. 1992)
Series: Topics in Regulatory Economics and Policy, 10
Expected to ship within 10 - 15 working days
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Donate to Against Period Poverty
Total price: R4,213
Discovery Miles: 42 130
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Title IV of the Clean Air Act Amendments effectively transfers an
environmental property right, the difference in unrestricted
emissions and the yearly endowment, 3 from certain fIrms to the
public domain. Phase I is to reduce annual SOz emissions of 261
large (100 MW or more) utility generating units with emissions
greater than 2. 5 IbslmmBtu. The yearly endowment during Phase I is
equal to 2. 51bslmmBtu times the 1985-1987 baseline energy usage.
Phase I standards are required to be met by 1995, an exception
being units that install certain control technologies. In this
case, units may postpone compliance until 1997 and may receive
bonus 4 allowances. Phase II begins in the year 2000 and applies to
any utility units (25 MW or more) with emissions above 1. 2
Ibs/mmBtu. The endowment is 1. 2 Ibs/mmBtu times baseline fuel use
(U. S. Environmental Protection Agency 1990). 5 Hahn and Noll
(1982), Bohi and Burtraw (1992), Lock and Harkawik (1991), and
Walther (1991) discuss interactions between traditional
rate-of-return regula- tion and overlaying environmental
regulations, particularly tradable emission allowances, in the
electric utility industry. Lock and Harkawik (1991) and Niemeyer
(1991) discuss utility planning in this regard. Bohi and Burtraw
(1992) fmd that a utility's environmental investment incentives
will vary depending on cost recovery rules and argue that symmetry
in treatment of investments in allowances and control technology is
necessary if the utility is to be provided with the incentive to
minimize costs of compliance.
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