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3.2.7. Other Incentives for Air Pollution Control

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Savings from Economic Incentives


There are literally hundreds of economic instruments in use at the federal, state and local level for managing air quality. The aggregate savings from these instruments is difficult to assess without performing an evaluation of a large number of such instruments. This section examines five instruments believed to have the potential for producing large dollar savings:

1. State Air Emission Fees
2. Federal Nonattainment Area Fees
3. Vehicle Scrapping
4. Oxygenated Fuels Requirement.
5. Hazardous Air Pollutants Early Reduction

Of these instruments, vehicle scrapping could achieve savings on the order of $100 million annually relative to a command and control alternative such as more vigorous inspection and maintenance policies. Although the other instruments can be characterized well, it is very difficult to project cost savings.


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