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| Air Quality Research |
| Title: | Economic Assessment of Meeting Air Quality Standards |
| Project Period: | 09/01/2002 - 11/21/2002 |
| Total Budget: | $9,553 |
| Sub-Contractors: | Perryman Group - Ray Perryman ($9,553)
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Study Findings
The recent economic and population expansion in Texas has impacted the environment and particularly the air quality. The Houston-Galveston area (HGA) specifically finds itself in violation of the air quality standards established by the 1990 Clean Air Act amendments and enforced by the EPA through the State Implementation Plan (SIP). The HGA as a non-attainment area is facing mandatory sanctions by the EPA if the clean air standards are not met within the next 4 years.
This project analyzes the economic and fiscal consequences of non-compliance with the clean air acts amendments. Two models are used: 1- The Texas econometric model which generates a baseline forecasts of key economic variables impacted by potential sanctions such as output, income, and employment; 2- The Texas multi-regional impact assessment system which determines the effects of changes in more than 500 industrial sectors. Using these models, the analysis shows that there would be significant spillover effects of any sanctions of the non-attainment and near-attainment areas to the remainder of the state of Texas. In addition, emissions from Houston are contributing to the other regions' air quality challenges.
The consequences of non-compliance would be significant and three-fold: 1- On-going health consequences; 2- Limited future economic expansion; 3- Reduced availability of federal highway funds. These consequences would have a devastating effect on the aggregate economy.
Finally, the examination of the fiscal effects of these losses on the state revenues reveals that the economic dislocations would seriously undermine the long-term stability and prosperity of Texas.
Implications
The assessment of the economic and fiscal impact of sanctions imposed on non-attainment areas such as the Houston-Galveston area clearly shows that complying with the Clear Air Act Amendments is a prerequisite to sustainable prosperity in Texas.
Related Documents
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| Page Updated/Reviewed: 05/24/2006 10:15 AM |
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