Under the Clean Air Act, the Environmental Protection Agency (EPA) regulates ozone emissions. Mark Perry, an economist

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Under the Clean Air Act, the Environmental Protection Agency (EPA) regulates ozone emissions. Mark Perry, an economist at the University of Michigan–Flint, notes in an opinion column: “Ground-level ozone, a major component of smog, causes premature deaths among people with lung and respiratory ailments like asthma.” And he says that according to the Clean Air Act, “The EPA is not allowed to factor in the cost of environmental compliance when tightening its ozone standard.”

a. Is the economically efficient level of ozone emissions zero? Briefly explain.
b. Is it likely that under the Clean Air Act, as it is currently written, the United States will achieve the economically efficient level of ozone emissions? Briefly explain.

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Macroeconomics

ISBN: 9780135801741

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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