Who Pays for Cutting Smog-Causing Emissions?

July 26th, 2019

Who Pays for Cutting Smog-Causing Emissions?

On September 24, 1998 the U.S. Environmental Protection Agency ordered 22 states east of the Mississippi to reduce smog-causing emissions in a move to halt wind-borne air pollution in the Northeast. The order requires states to have a clean-air plan in place by September of this year and controls by 2003. The move is expected to prevent thousands of cases each year of smog-related illnesses such as bronchitis and exacerbated cases of childhood asthma. Nitrogen oxides, referred to collectively as NO_x, are the main smog-causing pollutants. The EPA order requires that by 2003 the 22 states (actually 21 states, since Rhode Island does not have to reduce its emissions) reduce their NO_x emissions by a total of 1.16 million tons annually from 1997 levels. See page 4 for the specific list of states and their required reductions.Large, fossil-fuel burning power plants and automobiles are the major sources of NO_x emissions. The EPA estimates that it will cost $1,500 per ton of NO_x reduction by utilities, compared to $3,400 per ton by automobiles. Thus, the EPA advocates focusing on power plants and estimates that the reduction can be achieved by adding $1 to the average consumer’s bill. Some industry and state environmental officials disagree. They distrust EPA’s estimates regarding wind-borne smog traveling to the Northeast and EPA’s estimate of the pollution-reducing cost per electricity consumer. These concerns raise the question: Who pays for NO_x reduction to benefit only the Northeast? In other words, does the EPA Order burden the states equitably?

Trendline analyses between states’ required NO_x reductions and selected economic and demographic data reveal several interesting facts.

On cursory inspection it would seem that states with larger populations are being required to reduce more; however, the percentage reduction is independent of population size. States with lower per capita income are being required to reduce more, in both amount of and percent reduction, so that the poor are being asked to bear a greater burden. States that use more electricity are required to reduce more emissions, making the EPA Order seem fair. However, states that generate and export electricity have an even higher burden.Although automobile NO_x emission reduction is more costly, some experts advocate placing the burden on the driver who is using the road and causing the smog. But automobiles are not the main focus of the EPA Order. Electricity is being targeted, even though it is not fair to burden every electricity consumer equally, when the benefits are primarily for one section of the country.

What does all this mean for Alabama? Alabama’s low per capita income indicates a lower ability to afford clean air and health benefits for our northeastern sisters, even if we are willing to pay for that. Alabama is also a net exporter of electricity—a factor for which the state should receive credits rather than blame. Thus, the state is being targeted unfairly to bear the cost of benefits to the Northeast.

Alabama has local emissions problems to deal with. The air in some of our own counties is not clean. Adopting emissions controls on vehicles would help alleviate the local pollution. And, we are also required, somehow, to help pay for cleaning the air in the Northeast.

Samuel N. Addy

States Required to Reduce Smop-Causing Emissions

	Nitrogen Oxide Emissions
	to be Cut by the Year 2003
		Percent	Electricity, 1997		Miles of	Federal, Public,
		Reduction from	Use	Generation	and Interstate	Per Capita
STATE	Tons	1997 Levels	(million KWh)	(million KWh)	Road, 1995	Income, 1997

Alabama	59,934	27	73,410	113,684	117,714	$20,599
Connecticut	3,234	7	28,377	13,228	26,569	35,954
Delaware	2,413	12	10,025	6,579	7,110	28,443
Georgia	63,158	26	100,400	101,780	142,671	23,893
Illinois	100,965	32	125,882	131,138	173,627	27,927
Indiana	114,169	36	88,400	110,466	116,053	23,183
Kentucky	75,298	33	75,748	91,558	88,143	20,599
Maryland	21,182	23	56,481	44,553	37,586	28,571
Massachusetts	1,647	2	47,543	33,899	42,013	31,207
Michigan	88,842	30	97,029	89,565	151,991	24,998
Missouri	60,556	35	65,268	71,073	154,148	23,723
New Jersey	9,961	9	66,495	23,761	45,498	32,233
New York	10,590	6	131,602	108,099	139,775	30,299
North Carolina	61,449	29	108,439	107,371	118,159	23,174
Ohio	132,728	36	156,606	141,249	144,019	24,203
Pennsylvania	79,338	24	126,512	177,167	147,396	25,578
Rhode Island	–	–	6,680	3,563	7,547	25,589
South Carolina	29,281	21	67,798	78,374	82,414	20,551
Tennessee	69,950	28	86,001	93,293	103,428	22,752
Virginia	35,331	18	87,242	58,986	91,340	26,172
West Virginia	97,967	51	26,224	88,284	45,920	18,734
Wisconsin	38,851	27	59,943	48,560	139,776	24,199

Sources: U.S. Department of Commerce, Bureau of Economic Analysis; U.S. Department of Energy, Energy Information Administration; U.S.
Department of Transportation, Federal Highway Administration; and Environmental Protection Agency.