Evaluating the EPA's Clean Air Transport Rule

Harvard University professor and Analysis Group affiliate Robert Stavins coauthored a report with MIT Sloan School of Management professor Richard Schmalensee on the US Environmental Protection Agency's proposed Clean Air Transport Rule to regulate the interstate transport of sulfur dioxide (SO2) and nitrogen oxides (NOX) emitted from electric power generation facilities. In the report, "A Guide to Economic and Policy Analysis of EPA's Transport Rule" (March 2011), commissioned by the Exelon Corporation, the authors conducted a benefit-cost analysis to assess decisions about the stringency, design, and timing of the proposed rule. The authors found that, while imposing incremental costs to achieve reductions in SO2 and NOX emissions, the Transport Rule would produce significant benefits in terms of improved health outcomes, and better environmental amenities and services, which could significantly outweigh the costs.


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