Cross State Pollution Rules and Impact

An article in the Economist (Oct 15,2011) describes the issues surrounding CSAPR or Cross State Air Pollution Rule. The rule by the EPA requires power plants in 28 states to  decrease sulphur dioxide emissions by 27% and nitrogen dioxide by 46% of 2005 levels. The EPA expects these changes to prevent between 13,000 and 34,000 pollution related deaths and generate $120 to $280 billion in health and environmental benefits each year.   But states most affected claim that utilities will shut plants and thus cut jobs.    How should the benefits of pollution reduction be shared with those incurring the costs ?      Should the costs of pollution be imposed as a tax, so that the supply chain impact is borne by polluters? Should technology to decrease pollution be subsidized so that adoption is due to self interest ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Service Operations, Supply Chain Issues, Sustainability and tagged , , , , , , , . Bookmark the permalink.

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