Econ Energy

Uniform vs. Non-uniform mixing

Uniform mixing of a pollutant-harm caused by pollutant does not depend on where it was generated (examples, CO2, Denver brown (smog) cloud)

Non-uniform mixing is harm done by a pollutant depends on where it was generated (SO2, smog in LA)

Multi-tiered regulatory environment.

1. US Environmental Protection Agency (EPA) is the highest. It sets national standards and delegates enforcement power to lower levels.

2. State level environmental protection agencies for air quality largely coordination function except for California Air Resources Board which has independent standard setting ability under Federal Law.

3. Air pollution control districts: (review concept of an air basin). E.g. South Coast air basin stretches from Ventura to OC and east to Riverside County.

Command & Control vs. economics incentives

-C&C requires a particular technology to be used (e.g. catalytic converter on vehicles) and a particular performance standard (e.g. emission standards per mile for a particular pollutant). Require optimal technology, increases cost and hence price.

-Economic incentive approaches are taxes, penalties, and subsidies (including marketable permits too.

Examples: gasoline taxes, CAFE standard penalties, and Cash for Clunkers

Key problems from regional air pollution: property rights and interregional decision making

Key aspect of metropolitan area/state/national level: one political jurisdiction has effective regulatory control

Energy production can be seen to play a major role in major externalities, coal plants emit tons of green house gasses, and when looking at the graphs from lectures we see that a majority of emerging countries (china) using lots of coal/oil which tend to burn very dirty.

Global pollutants: the main concern here is primarily focus on pollution of the air. The reason being is that it doesnt matter who is polluting its stll going in to the air. everyone shares the same air....