Regulating Mercury Emissions: What Do We Know About Costs and Benefits?

Abstract

United States policymakers are concerned with mercury emissions because mercury has potentially adverse effects on children whose mothers consumed contaminated fish while pregnant. Congress and the Environmental Protection Agency are considering different proposals to cut or even eliminate mercury emissions from oil and coal-fired power plants. We compare the cost of cutting power plants' mercury emissions with the likely reductions in the number of cases of subtle neurological effects. Given current scientific understanding, the health and environmental improvements are very unlikely to provide an economic justification for the costs of stringent controls on mercury emissions. In addition, if Congress or EPA were to regulate mercury emissions from power plants, an approach that used prices would be more efficient than one that limited the quantity of mercury emissions. For a related paper, see Health Risks From Mercury-Contaminated Fish: A Reassessment.