and water pollution laws, their achievements and their economic conse-
quences will be analyzed and evaluated. Although the book emphasizes in-
dividual plants and companies, the policy implications will concentrate on a
more macro level.

The focus of this book is on the environmental and economic achieve-
ments of two industries: electric utilities and pulp and paper. Electric utili-
ties do not constitute a typical industry. They are the largest industrial air
polluter in the United States and are economically regulated by state utility
commissions. ² By examining the accomplishments of the Clean Air Acts on
an industry that was specifically targeted for cleanup, a better understand-
ing of the effectiveness of the air pollution legislation can be obtained. Fur-
thermore, the economic impact of the air pollution regulations on these
utilities will provide a basis to assess the economic consequences of these
laws.

The pulp and paper industry is considered to be one of the major indus-
trial contributors to the water pollution problem in the United States. ³ Com-
pared to electric utilities, pulp and paper is more typical of a polluting
industry. It is economically unregulated (or as unregulated as a large indus-
try can be in the United States), and its prices are a function of the market
(as opposed to a state commission).

By examining the pollution performance of plants and companies in these
industries over a relatively long period of time (electric utilities, 1975-87,
and pulp and paper, 1978-86) the accomplishments that these entities have
made in reducing pollution can be meaningfully assessed. Furthermore, the
cleanup's economic implications can also be determined.

The book is divided into four parts. In Part I, air and water pollution
laws are discussed and their accomplishments are analyzed. This analysis
focuses on the nation's air and water pollution status in 1975, 1978, 1986,
1987 and 1992; the years for which the studies are done on electric utilities
and the pulp and paper mills and the current year. Part II deals with the
reporting of pollution performance. It is divided into chapters that discuss
air pollution performance of electric utilities by plants and then a compara-
tive analysis of this performance by plant and company. Similarly, an analy-
sis is performed of water pollution by pulp and paper mill and by company.
In Part III, the economic analysis of air and water pollution abatement is
presented. Included in these chapters is a literature review and the economic
consequences of the environmental cleanup for both electric utility and the
pulp and paper companies. Finally, in Part IV, the methodology including
measurement issues is discussed and the public policy implications of the
findings are provided.

-x-