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A European Acid Rain Program based on the US experience

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The paper shows that cost-effective involvement of the source location involves utmost difficulty in practice. Based on the RAINS model, it is recommended that source location should be ignored in a European market for SO2, as is the case in the US Acid Rain Program. Based on the political target levels in the Second Sulfur Protocol from 1994, free trade will, compared to Command-And-Control, lead to 37% cost-savings and 2% environmental degradation. To mitigate this 2% environmental degradation, we recommend that some of the large cost-savings should be reallocated in further overall reduction and that the worst hit countries should be compensated by receiving extra permits. Profits from selling these extra permits could then be used for local environmental protection measures.
Original languageEnglish
JournalEnvironmental Policy and Governance
Pages (from-to)220-29
Publication statusPublished - 2000

    Research areas

  • SO2, EU, Emission Trading, Acid Rain Program, Source location, Second Sulfur Protocol

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