Journal of Economic Literature, Vol. 38, pp. 627-633 (September 2000)
A. Denny Ellerman, Paul L. Joskow, Richard Schmalensee, Juan-Pablo Montero, and Elizabeth M. Bailey, Peter Crampton, Journal of Economic Literature, Vol. 38, pp. 627-633 (September 2000)
Markets for Clean Air is the definitive text on the U.S. acid rain program. The authors analysis is careful and convincing. The reader is rewarded with significant insights about a major environmental program. One learns how Title IV came to be and what were the consequences of rent seeking in its formation. One learns that the program was successful in cutting the costs of SO2 emission reductions by about half, saving tens of billions of dollars over the life of the program. And one learns a sound methodology for evaluating the success of an innovative market-based program. Both scholars and policy-makers will have a better sense of the virtues and pitfalls of market-based regulation after reading this book.