Clean Air and Energy: Reform of the PSD Provisions of the Clean Air Act

Air pollution regulation in the United States has come under repeated attack over the years for a number of reasons. Early in the past decade, prevention of significant deterioration (PSD) legislation, which protects currently clean areas, came into conflict with domestic energy production goals. This paper presents an applied analysis of present and alternative regulations for achievement of PSD air quality goals. A model of the Four Corners region of the Southwest is developed, and several policy alternatives tested in terms of economic efficiency and ability to achieve air quality goals. Alternatives examined include emission fees, marketable emission permits, and technological standards.