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Reforming Regulatory Impact Analysis by Richard D Morgenstern, Lisa Heinzerling, Winston Harrington

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CHAPTER 2

The Clean Air Interstate Rule

RICHARD D. MORGENSTERN

The Clean Air Interstate Rule (CAIR), promulgated by the U.S. Environmental Protection Agency (EPA) in March 2005, mandates reductions in power plant emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) in the eastern United States by 70 percent and 60 percent, respectively, by 2015, with interim reduction targets in 2010. The accompanying regulatory impact analysis (RIA) estimates that the quantified benefits of the CAIR will exceed the quantified costs by $80–100 billion in 2015, with most of the benefits in the form of reduced mortality and improvements in respiratory and cardiovascular health for adults and children. A closely related but distinct action, the Clean Air ...

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