Pollution Control

ECON 373March 28, 2012

Pollution Control•Federal Water Pollution Control Policy

▫Types of pollutants▫Regulations▫Efficiency effectiveness of the programs

•Federal Air Pollution control Policy

Federal Water Pollution Control Policy•Conventional pollutants:

▫Biochemical oxygen-demanding wastes (BOD), total suspended solids, bacteria, oil, grease and PH

•Nonconventional pollutants:▫Chemical oxygen demand(COD), total organic

carbon, nitrogen and phosphorous•Toxic pollutants:

▫65 named in the Clean Water Act chemicals▫ http://

water.epa.gov/scitech/methods/cwa/pollutants-background.cfm

Types of Waterborne Emission•Point sources: industry and domestic

wastewater•Nonpoint sources: agricultural runoff of

pesticides and fertilizers, chemicals and oils flushed off urban streets

•Continuous emission vs. episodic emission

Category of the Pollutants by it’s lasting effects•Persistent pollutant•Degradable pollutants:

▫BOD: biochemical oxygen demand The amount of oxygen required to decompose

the organic material under specified conditions of temperature and time.

High level of dissolved oxygen are usually associated with high-quality water

Dissolved Oxygen Profile in Water after a BOD Load Has Been Introduced

Time or distance

Federal Water Policy: A Brief History

Technology-Based Effluent Standards• TBES is an effluent standard set at the level of

emissions that a source would produce if it were employing a particular type of abatement technology

Efficiency and Cost-Effectiveness • Efficient policy: MAC = MD. TBES requires

factories in any location to use exactly the same equipment.

• Cost-effectiveness: is a question whether society is getting the maximum effect in terms of reduced emissions for the money spent. Unlikely given that there are 600 subcatagories of water-polluting industries under EPA definition but there are tens

Experience with TBESs•How much has the nation’s water quality

been improved as a result of the system?

Experience with TBESs•How bad has the cost-effectiveness

problem been?•19 studies found the ratio of TBES to

Least-Cost Control system ranges from 1.12-3.13

TBESs and Incentives•End-of-the pipe regulation

TBESs and Enforcement•Initial compliance, Yes•Continued compliance, ?

Federal Air Pollution Control Policy•Many potential air pollutants

▫Oxides of carbon▫Nitrogen▫Sulfur▫Volatile organic compounds▫Suspended particulate matter▫Photochemical oxidant▫Radioactivity

Federal Air Pollution Control Laws

National Ambient Air Quality Standards•http://www.epa.gov/air/criteria.html

Stationary and Mobile Sources of Criteria Pollutants

  Emissions (million tons)  1970 1980 1990 2002 2006Carbon monoxide Stationary 29.4 24.9 22.5 25.4 22.6 Mobile 174.6 160.5 131.7 86.6 78Nitrogen oxide Stationary 11.5 12.3 12.1 9.6 7.6 Mobile 15.3 14.8 13.4 11.5 10.6Volatile organic compounds Stationary 16.1 15.1 12 9.3 11.1 Mobile 18.5 16 12.1 7.2 6.2Sulfure dioxide Stationary 30.6 25.2 22.2 14.7 13.1 Mobile 0.6 0.7 0.9 0.7 0.6Particulate Matter (PM10) Stationary 12.4 6.3 27.1 21.6 18 Mobile 0.6 0.7 0.7 0.5 0.4Lead Stationary 39.2 9.5 3.8 3.7 N/A Mobile 181.7 64.7 1.2 0.5 N/A

Stationary and Mobile Sources of Criteria Pollutants

1970 1980 1990 2002 20060

5

10

15

20

25

30

35

40

45

Carbon monoxideNitrogen oxideVolatile organic compoundsSulfure dioxideParticulate Matter (PM10)Lead

Stationary-Source Control•Technology-based effluent standards

▫BACT: Best available control technology▫LAER: Lowest achievement emission rates▫RACT: reasonably available control

technology

•Cost-Effectiveness of TBES▫11 studies shows the Ratio of CAC Costs to

Least Cost ranges from 1.07-22.00

New Directions in Stationary-Source Control•Cap-and-trade (CAP)

▫Regional Clean Air Incentive Market (RECLAIM) in 1993

▫1990 Acid Rain program under CAAA▫NOx emission trading program in 13 NE

states in 1999

The CAP Program of the 1990 CAA•Two phases

▫Phase I:1995-2000, involving 110 electric power plants

▫Phase II: begins in 2000 includes 1000 power plants

•Time profile of discharge permits▫Phase I: 2.5 pounds of SO2 per million

BTUs multiply by the average annual fuel consumed from 1985-1987

▫Phase II: 1.2 pounds …

Has ARP program worked?

SO2 by State

SO2 Permit Prices

ETS CO2 Permit Price

Mobile Source Air Pollutant Control•Total Emission = # vehicles Average miles/vehicle emission/miles

•New vehicle certification program

•Inspection and Maintenance programs

CAFE Standards•CAFE standards: Corporate Average Fuel

Economy Program

•Goal: Aim to require automakers to enhance fuel efficiency

CAFE Standards

Cafe Standards•1) Separate MPG standards for all cars

and light trucks•2) Key here is average: not a standard for

all cars for fleet average•3) Standards have increased: 18 mpg

(1978) to 27.5 mpg (1985). 29 mpg in 2010 proposed to 56 mpg by 2025

•Separate Cafe calculation for domestic and foreign fleets

CAFE Standards

CAFE Standards