ABSTRACT
Concern exists that man-made emissions of sulfur dioxide and/or nitrous oxides are causing environmentally damaging levels of acid rain. Consequences include loss of aquatic wildlife species, reduced forest growth, and decreased agricultural production. The author examines the economic and political issues arising from the transboundary nature of this problem between Canada and the United States. Opportunity costs associated with emissions dilution, capture, and reduction are analyzed for electricity and nonferrous metal producers, the chief sources of acid rain. The analysis incorporates a review of regulations in Canada and the United States and negotiations between the two countries. This chapter provides insights about policy options other than moral suasion for natural resource and environmental issues that span political boundaries.
