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Abstract

Historically, the Clean Air Act (CAA), a powerful piece of environmental legislation that employs consumer choice and tradable pollution permits, has been considered successful; however, the relative success of the CAA is not measured in relationship to all the potential harms that result as externalities of the law. This analysis will take a more critical look at the often-overlooked coal industry. Since coal-fired electric power is the primary industry targeted in CAA legislation and it is responsible for the majority of sulfur dioxide pollution in the United States, it is necessary to study any unintended consequences on this industry from the law. Transportation distances, eastern versus western coal disparities, and the effects of closed mines will be studied. If the program continues to be successful, it can bode very well for future pollution mitigation programs on a variety of levels.

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