Business Economics

1. Diverse Syndicate/Group 5
Acintya Anindita 29110304
Aulia Wiryoatmojo 29110307
Danny Kartika 29110338
Deru R Indika 29110301
Oliver Jost 29110324
Shierly 29110311

2. EPA Regulation
(Clean Air Act of 1990) Effect
Ozone Advisory
• Philadelphia during summer had just 7 days compared with 23 during
summer 1988
• New York City had just 4 days compared 21 days in summer 1988
• Washington had just 1 days compared with 12 days in summer 1988
• In Los Angeles, ozone reading declined steadyly during the past decade
Carbon Monoxide Standard
• New York City have none out of compliance in 1992 compared to 72
days during 1985
• Replacement the older automobiles and trucks with newer and less
polluting ones reduced level of air pollution in American cities (In 1999
automobile emit less 1 percent of the pollution emited by the average
1970 automobiles

3. EPA Plan For Higher Clean Air Standards
A sharp reduction of sulfur in gasoline
Requiring sport utility vehicles, minivans,
and pickup trucks to meet the same tailpipe
emission requirements as automobiles, as
well reducing further automobiles emissions
Requiring electrical generating plants to use
cleaner energy sources

4. Industrialist concern:
Deminishing Return cause of reduce pollution
Positive return plateaus and
more pollution removed does
Output not have positive income
per Deminishing positive return
with increase in amount of
period of pollution removed More pollution removed
time lead to negative income
Positive return with increase in Unit of inputs per
amount of pollution removed period of time

5. Debate
The annual savings
in medical bills far The extra benefits do
exceed the cost of not justify the extra
cleaner air costs

6. Externalities

7. Externalities

8. Future Clean Air Act
Cost of more
than $50
billion
Cut Air
Pollution by 2015
Estimated
more than
result
60%
$100 billion
in annual
benefits

9. Recommendation
The EPA Regullation lead company cost become higher in
short time, but in the long term company Long Average
Cost will become low cause the excess par of employe
maintaining health office over environment cost and
technology improvement
To help companies and prevent the cost held by
consumer is need government support and subsidies to
company that run the regullation