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EPA greenhouse gas emission limits on new power plants may not be cost minimizing

Environmental Economics

s proposal remain confidential, experts predict that it will include separate standards for carbon dioxide emissions from plants fired by natural gas and by coal. Plants using comparatively clean gas would be permitted to emit perhaps 1,000 pounds of carbon dioxide per megawatt-hour, a ceiling within easy reach using modern technologies. Costs would be reduced by $30 if the natural gas plant was required to reduce one more unit and the coal plant reduced one less unit.