Environmental Economics Blog on Fallout from Federal Appeals Court Striking Down Cross-State Air Pollution Rule

http://www.env-econ.net/2012/08/benefit-cost-analysis-be-darned.html

The least that I can do is CAIR*

Benefit-cost analysis be darned:

The fallout has begun just one day after a federal appeals court scrapped a major EPA rule designed to curb long-distance drifting power plant pollution — and Louisville’s air quality may pay the price.
A Western Kentucky utility told the Kentucky Public Service Commission Wednesday that it intends to abandon pollution controls that would have allowed it comply with the U.S. Environmental Protection Agency’s Cross-State Air Pollution Rule, also known as the transport rule. 
Henderson-based Big Rivers Electric Cooperative, which owns and operates four generating stations and a 1,266-mile transmission system, could save its customers about $225 million by dropping pollution controls required for the transport rule, said Marty Littrel, cooperative spokesman.

via www.courier-journal.com
Stavins and Schmalensee conclude:

Existing studies providing estimates of the Transport Rule’s benefits and costs consistently find that benefits outweigh costs, on a national basis, often by a wide margin.

*With apologies to Kid Rock. 

Environmental Economics Blog http://www.env-econ.net

Posted by John Whitehead on August 23, 2012