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The Economic Impact of the Clean Air Act Amendments of 1990

Abstract:
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: Q58: Environmental Economics: Government Policy, Q52: Pollution Control Adoption and Costs; Distributional Effects; Employment Effects, Q41: Energy: Demand and Supply; Prices, Q40: Energy: 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.