Curbing Acid Rain: Allocating Sulfur Dioxide Control Costs Under an Emissions Control Program

For many proponents of legislation to control acid rain, a key issue is how to allocate the clean-up costs. Particular concern focuses on the costs of controlling emissions of sulfur dioxide SO2, a key source of the problem. Roughly two-thirds of the nations SO2 emissions come from electric power plants, so control measures tend to concentrate on these sources. Though acid rain affects a broad region--much of the eastern half of the nation- the suspected origin lies largely in the Midwest, the site of many older power plants burning coal with a moderate to high sulfur content. Two questions therefore are central to the debate Should parties responsible for the emissions the Midwestern states and electricity consumers in them pay the entire cost of the clean-up Or, on the other hand, Should clean-up costs be spread more evenly throughout the region affected, since it is the entire region that would enjoy the benefits of curbed SO2 emissions