New Source Review: What's Old is New
7 Pages Posted: 26 Apr 2006
Abstract
Neither the Bush administration nor its critics grasp what is truly flawed with New Source Review. Its problems are two-fold: it is part and parcel of the larger mistake of grandfathering, and it is defined mostly in terms of the installation of pollution-control equipment. Both of these aspects of New Source Review retard the turnover of polluting capital, locking in obsolete, old facilities such as 80-year-old coal-fired power plants and giving them economic reasons to live well past their original intended retirement date. This capital sluggishness is bad from both an economic and an environmental perspective.
Keywords: New source review, grandfathering, pollution control, factories, obsolete factories, economics, environmental issues, environmental concerns
JEL Classification: H59, J28, J29, K23, L60, L98
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