Command and control approach versus allowance trading German and US American SO2 regulations: A comparison

The German air pollution policy is still dominated by the traditional comma nd and control approach. The U.S. American SO2 Allowance Program, created u nder Title IV of the Clean Air Act Amendments of 1990, represents a radical departure from this approach. The paper compares the German and U.S. Ameri can SO2 regulations for coal fired power plants and discusses the different experiences. Character and stringency of regulations, reactions of electri c utilities and costs of alternative policy measures are analysed.