Description
Instructions:
1. Write your full name on the first page.
2. Write double-spaced summary/comments (three paragraphs typed) on each case study.
3. Each paragraph must contain three sentences and is worth 2 or 3 points.
4. Use Times New Roman, one inch margins, and 12 point font.
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Running head: ENVIRONMENTAL ECONOMICS
1
Environmental Economics
Student Name
Institutional Affiliation
ENVIRONMENTAL ECONOMICS
2
Case 1: Sulphur Dioxide Emissions Trading
A Clean Air Act was passed by the US federal government in 1990. This the passing of
this Act so to it that policies were passed to reduce the rate of Sulphur Dioxide emissions by
plants that use coal for fuel. This was as a result of the acid rain and health problems associated
with the presence of Sulphur Dioxide in the atmosphere.
The sulphur dioxide emissions trading programs allow coal-fueled plans to use coal which
emits sulphur dioxide among other gases into the atmosphere. These plants were allowed to
choose between two technologies, burning coals of low sulphur levels and installing
desulphurization equipment. These two technologies reduce the rate of sulphur dioxide into the
air and also reduces the cost of dealing with the reduction of the stated gas, emissions.
The main disadvantage of sulphur dioxide emissions trading is that people living in the
densely populated region are still affected by emissions, which may be higher than the required
as per the standards, from plants fueled by coal. This is mainly attributed to the fact that utilities
in the densely populated regions face high costs of reducing emission rates as compared to the
sparsely populated areas. This leads to the utilities in densely populated areas to pay utilities in
sparsely populated areas so that...
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