The US 1990 Clean Air Act Amendments and Wyoming Low-Sulfur Coal Demand

Mitch Kunce

Icfai University Journal of Applied Economics, 2007, vol. VI, issue 3, pages 59-78

Abstract: The paper analyzes the effect of the US 1990 Clean Air Act Amendments on Wyoming low sulfur coal demand. The demand for Wyoming coal is estimated using an adaptation of Heckman’s (1979) two-stage estimator. The results indicate that variation in sulfur allowance prices has little impact on the demand, although it may affect demand indirectly by inducing distant electric utilities to purchase Wyoming coal. Transportation costs appear to dominate the Wyoming coal market accounting for as much as 70% of the delivered price of coal.

Date: 2007

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