The Bureau of Mines Electric Utility Model

Published Online:https://doi.org/10.1287/opre.42.6.998

Discussion of alternative proposals to control emission precursors of acid precipitation focused on their effects on the electric power and coal industries. The Bureau of Mines was concerned about possible indirect effects on electricity-intensive mineral processing facilities, and sponsored research to help it estimate these effects. The research developed a modeling system to estimate compliance strategies and associated changes in electricity costs under different legislation, and dissemination of these results helped inform and broaden discussion of alternative proposals. Early recognition that design of the modeling system would have to allow for flexibility and change enabled development of a system that the Bureau of Mines can use to analyze a broad range of issues involving the electric utility industry, and that utilities or states can use for developing and screening plans to comply with the 1990 Clean Air Act Amendments.

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