Date of Award


Document Type

Senior Scholars Paper (Open Access)


Colby College. Economics Dept.




Recent scientific studies indicate that atmospheric emissions of certain chlorofluorocarbon compounds (CFCs) contribute to depletion of the ozone layer which protects the earth from harmful ultra violet radiation. Since late 1978, the use of these compounds as aerosol propellants has been banned in the United States. (43 FR 11301-11326). Since then, the use of CFCs in other product areas has risen dramatically. With this in mind, the Environmental Protection Agency has suggested that further regulation of CFC use may be necessary. EPA is considering two major approaches to further CFC emissions control: a mandatory controls approach and an economic incentives approach. This study focuses on the latter, analyzing a host of regulatory approaches which are based on economic incentives. The analysis is aided by the use of a computer simulation which models future CFC demand. Using the model, the costs of pursuing various regulation strategies are compared. Further, this report examines how these costs increase if regulation is delayed for a few years. Minimizing the cost of reduction is only part of the problem. Therefore, this study addresses the political and administrative aspects of implementing various control strategies. Conclusions and recommendations are drawn from an analysis incorporating all these aspects.


chlorofluorocarbon compounds, aerosol propellants, Environmental Protection Agency, computer simulation, EPA