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A critical overview of the evolutionary approach to air pollution abatement policy
Author(s) -
Merrifield John
Publication year - 1990
Publication title -
journal of policy analysis and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.898
H-Index - 84
eISSN - 1520-6688
pISSN - 0276-8739
DOI - 10.2307/3325281
Subject(s) - air pollution , pollution , economics , natural resource economics , environmental science , environmental planning , management science , ecology , biology
Emerging flaws in existing air quality policies and changing air quality objectives are being addressed with piecemeal modifications. The evolving policy combines a command and control (CaC) core with add‐on opportunities to trade pollution control responsibilities based on economic incentives. While the add‐ons have greatly improved air quality policies, retention of the CaC core means that we are still paying far too much for air quality that is still unacceptable. Specific reasons why a CaC core limits emissions trading and reduces economic efficiency are discussed. They include: (1) the arbitrary and irrelevant nature of CaC‐based assignment of pollution control responsibility to firms; (2) trading limits for emissions offsets in ‘non‐attainment areas’; (3) all‐ornothing deadlines that have been extended three times; (4) sunk costs as a barrier to innovation; (5) the illusion that a CaC‐based policy has lower inventory and monitoring costs. The conclusion is that there will be a big difference between the performance of the existing policy, even with some additional modifications, and the kind of market incentives‐based policies advocated by economists. Economists' proposals are now before Congress in congressionally sponsored studies. Reauthorization of the Clean Air Act, in some form, is expected this congressional session.