Incentives for Technological Innovation in Air Pollution Reduction: An ETIP Policy Research Series. Volume 1: Emission Offset Policy at Work: A Summary Analysis of Eight Cases

摘要

The Emission Offset Interpretative Ruling of 1976 is analyzed into its administrative components. Eight permit applications involving emission offsets provide data describing the administrative functioning of the offset policy in terms of these components. In the eight cases presented here, offsets were easy to find, but the process for determining Lowest Achievable Emission Reduction (LAER) was typically quite complex. Offsets were not bought and sold in any of these cases. Third parties promoting local economic development were an important factor in locating offsets. In these eight cases, technological innovation involved development of new control techniques and diffusion of known technology to hitherto uncontrolled sources of emissions. 'Technology-forcing' standards, such as LAER, and offset requirements contributed to the development of innovative control techniques.