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The Economic Impact of the Clean Air Act Amendments of 1990

The purpose of this paper is to quantify the economic impact of the Clean Air Act Amendments of 1990. The long-run cost of environmental regulations enacted prior to 1990 amounts to 2.59% of the U.S. national product. The new legislation will reduce the national product by a further 0.6% when the impact is complete. Electric utilities and primary metals industries will be especially hard hit by this legislation.

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Energy Specializations: Energy and the Environment – Air Emissions (other than greenhouse gases); Energy and the Environment – Policy and Regulation

JEL Codes:
Q52 - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
E60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General

Keywords: Clean Air Act Amendments, US, Regulation, Air pollution, Policy

DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No1-7

Published in Volume 14, Number 1 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.