This paper analyzes the effects of pollution control regulation on input markets. Under Title IV of the 1990 Clean Air Act Amendments, sulfur dioxide emissions from large coal-fired electric power plants in the United States are regulated by a cap-and-trade system. We address the question of who gained from from Title IV. We first show that Phase I of the tradeable permits program, from 1995 to...

Introduction RE<C was a Google initiative to drive innovation in renewable energy, with the goal of making renewable energy cheap enough to compete head-to-head with coal-fired power plants. Hence the name RE<C “renewable energy cheaper than coal.” As part of this initiative, Google formed an engineering team to develop promising technologies in the field of solar energy power generation. After...