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For more information about the Department of Agricultural and Resource Economics, and about training and career opportunities, please contact:

Undergraduate:
ugarec@ag.arizona.edu
Phone: (520) 621-6244

Graduate:
garec@ag.arizona.edu
Phone: (520) 621-2421

Related Links:

U.S. Environmental Protection Agency

Cleaner Skies
Cost Effective Emissions Control

Maintaining clean air in urban areas is a tremendous and costly challenge. Congress first began to grapple with air quality in the 1950s and began vigorous federal regulation of polluting industries in the 1970s, creating the Environmental Protection Agency to implement and enforce clean air policies. By the early 1980s, progress in meeting air quality standards still was unsatisfactory in many regions despite the fact that polluters had spent a lot of money to reduce emissions.

Environmental economists suggested that desired levels of air quality could be achieved at lower cost if not every polluter had to achieve exactly the same level of emissions control. Newer power plants, for instance, typically can clean up their emissions at lower cost than older plants, so why not let the least cost providers of cleaner air do more of the clean up? This concept was carefully presented to Congress, which liked the idea of meeting environmental standards in a way that imposed fewer costs on businesses.

Over the past decade, a sophisticated nationwide emissions permit trading program has developed. Through thousands of transactions, the power plants that are most cost-effective in controlling pollutants are paid to control emissions by the less cost-effective plants. Millions of dollars are saved each year in air quality control costs, thanks to economists who came up with a good idea and were able to effectively convince Congress, industry leaders, environmentalists, and the public.

Faculty Involvement
Bonnie Colby conducts research and advises state and federal agencies on implementation of tradable permits for water use.

Student Involvement
Liz Ryan, M.S. graduate, has helped operate urban waste recycling programs.

Mark McGinnis, M.S. Graduate and law degree, advises a wide range of clients on environmental compliance.

Bruce Peacock, Ph.D. graduate, has worked with several federal agencies on the economics of environmental protection.

Additional Readings
Joskow, P.L., and R. Schmalensee. "The Political Economy of Market-Based Environmental Policy: The US Acid Rain Program." Journal of Law and Economics, 1998.

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