Acid Rain Program

The Acid Rain Program is a U.S. initiative designed to reduce pollution from power plants that burn fossil fuels. It sets limits on emissions of sulfur dioxide (SO₂) and nitrogen oxides (NOₓ), which contribute to acid rain. Through a system of allowances, plants can buy or sell emission permits, encouraging them to lower emissions cost-effectively. The goal is to improve air quality and protect ecosystems while allowing flexibility for energy producers. This market-based approach has successfully decreased harmful pollutants and demonstrated effective environmental regulation.