“Buying The Sky”: Acid Rain Controls in the U.S. Under the 1990 Clean Air Act

The new acid rain control provisions are the most significant effort to date to utilize market principles in regulating difficult pollution problems. This chapter aims to evaluate the progress of this effort in promoting efficient pollution control. Sending the emissions high into the atmosphere increased the time that the pollution stayed in the air; the longer it is in the air, the greater the chances that the pollutants will form acid rain. Emissions of SO₂ and NO_x which remain suspended in the air in the form of sulfates and nitrates can significantly impair visibility. Proponents of acid rain legislation have attempted to use the existing Clean Air Act to force reductions in SO₂ and NO_x emissions below levels considered acceptable for compliance with National Ambient Air Quality Standard. The 1990 Amendments also include specific requirements for reducing NO_x emissions. The Act provides a market-based approach that offers utilities flexibility to comply with SO₂ emissions reductions.