a. How much would the Navaho Generating Station have to spend to comply with the EPA order to reduce its sulfur dioxide emissions?
b. What benefit would NGS and the public at large gain from this expenditure?
c. Without an order from the EPA, would NGS ever choose to reduce its sulfur dioxide emissions?
d. How many visitors do you think there are to the Grand Canyon in the winter months?
e. What is the cost per visitor of the proposed EPA order?
In the Clean Air Act, Congress directed the EPA to issue regulations that would protect visibility at national landmarks. The Navaho Generating Station (NGS) is a power plant 12 miles from the Grand Canyon. The EPA ordered NGS to reduce its sulfur dioxide emissions by 90 percent. To do so would cost NGS $430 million initially in capital expenditures and then $89.6 million annually. Average winter visibility in the Grand Canyon would be improved by at most 7 percent, but perhaps less. The NGS sued to prevent implementation of the EPA's order.