| Chapter 7 Outline |
| VI. THE ECONOMICS OF THE CLEAN AIR ACT: HAVE WE GONE TOO FAR? |
| A. General Comments |
| 1. Economists believe that government regulation is appropriate as long as the benefits from regulation exceed the costs. |
| 2. Economists have been concerned that several provisions of the Clean Air Act Amendments of 1990 may impose costs on society that outweigh the benefits received. |
| a. The two features that have drawn the most interest are the regulations designed to reduce acid rain and the regulations designed to reduce the
number of urban areas out of compliance with the NAAQS. |
| 3. A recent study indicates that the costs of reducing ground-level ozone have exceeded the benefits. |
| 4. The command-and-control measures in the amendments are partially responsible for increasing the cost of controlling air pollution. |