Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/7688

Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: Bush v. Gore and the effect of New Source Review on power plant emissions
Authors: Lange, Ian
Linn, Joshua
Contact Email: i.a.lange@stir.ac.uk
Keywords: Event window
New source review
Coal power plants
Air pollution
Issue Date: Aug-2008
Publisher: Springer
Citation: Lange I & Linn J (2008) Bush v. Gore and the effect of New Source Review on power plant emissions, Environmental and Resource Economics, 40 (4), pp. 571- 591.
Abstract: New Source Review (NSR) is a Clean Air Act regulation that requires electric utilities to meet emission standards when making modifications to existing power plants. The regulation increases the cost of replacing worn out parts, and limits the firm's scope of potential capital investments. Such restrictions may lead to greater retirements and lower utilization, adversely affecting profits. Prior to the 2000 presidential election, investors expected Bush to have a narrower interpretation of NSR than Gore. Therefore, we use changes in stock prices to estimate the effect on profits of differences in NSR policy. Our results indicate that investors expected the average boiler to be $38 million more valuable under the Bush administration. Over the boilers' lifetimes, the additional utilization will have increased emissions by 19 million tons of sulfur dioxide, 5.9 million tons of nitrogen oxides and 980 million tons of carbon dioxide, relative to natural gas generation.
Type: Journal Article
URI: http://hdl.handle.net/1893/7688
DOI Link: http://dx.doi.org/10.1007/s10640-007-9170-z
Rights: The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.
Affiliation: Economics
Univeristy of Illinois

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