Regulation greatly reduced air pollution

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Business Economics

Transcript of Regulation greatly reduced air pollution

Regulation Greatly Reduced Air Pollution

Diverse Syndicate/Group 5

Acintya Anindita 29110304Aulia Wiryoatmojo 29110307

Danny Kartika 29110338Deru R Indika 29110301

Oliver Jost 29110324Shierly 29110311

EPA Regulation (Clean Air Act of 1990) Effect

Ozone Advisory• Philadelphia during summer had just 7 days compared with 23 during

summer 1988• New York City had just 4 days compared 21 days in summer 1988• Washington had just 1 days compared with 12 days in summer 1988• In Los Angeles, ozone reading declined steadyly during the past decade

Carbon Monoxide Standard• New York City have none out of compliance in 1992 compared to 72

days during 1985• Replacement the older automobiles and trucks with newer and less

polluting ones reduced level of air pollution in American cities (In 1999 automobile emit less 1 percent of the pollution emited by the average 1970 automobiles

EPA Plan For Higher Clean Air Standards

A sharp reduction of sulfur in gasoline

Requiring sport utility vehicles, minivans, and pickup trucks to meet the same tailpipe emission requirements as automobiles, as well reducing further automobiles

emissions

Requiring electrical generating plants to use cleaner energy sources

Industrialist concern: Deminishing Return cause of reduce pollution

Positive return with increase in amount of pollution removed

Deminishing positive return with increase in amount of pollution removed

Positive return plateaus and more pollution removed does not have positive income

More pollution removed lead to negative income

Output per period of time

Unit of inputs per period of time

DebateThe annual savings in medical bills far exceed the cost of

cleaner air

The extra benefits do not justify the extra

costs

Externalities

Externalities

Future Clean Air Act

Cost of more than $50

billion

$100 billion in annual benefits

Cut Air Pollution by more than

60%

2015Estimated

result

RecommendationThe EPA Regullation lead company cost become higher in short time, but in the long term company Long Average Cost will become low cause the excess par of employe maintaining health office over environment cost and technology improvement

To help companies and prevent the cost held by consumer is need government support and subsidies to company that run the regullation

Thankyou