Evaluation of the First Phase of Sulfur Dioxide and Nitrogen Oxides Provisions of the 1990 Clean Air Act: A Plant-Based Approach

Electric power generating plants that use coal were among the key targets of Title IV of the 1990 Clean Air Act. Under the first phase of the act, 110 coal-fired electric power plants were required to reduce their sulfur dioxide emissions by 1995 and nitrogen oxide emissions by 1996. Phase 2 of the act requires even greater reduction of sulfur dioxide emissions by 2000 and nitrogen oxide emissions by 2008. This study examines whether the 107 targeted plants (three plants went off-line) have achieved the desired sulfur dioxide and nitrogen oxide emission levels. The analysis of sulfur dioxide is based on data from 1990, 1995, and 1999. The findings show that although sulfur oxide increased by 3% from 1995 to 1999, it decreased by 45% over the 1990–1999 period at the firm level for the targeted firms. The findings also indicate that the overall reduction in sulfur dioxide was achieved by utilizing low sulfur coal and by purchasing emission allowances. So far as nitrogen oxides are concerned, there has been a reduction of 14% over the 1990–1999 period, of which 7% was achieved during the 1995–1999 period. An evaluation of emissions at the plant level indicates that several plants do not meet the emissions level for sulfur dioxide or nitrogen oxides. These results provide a mixed scorecard for reduction in emissions both for sulfur dioxide and nitrogen oxides. Even though there is reduction in the emissions on an overall basis at the firm level, several plants that have not been able to reduce emissions deserve special attention to meet the goals of the act in reducing emissions.