Summary: In testimony before a Senate committee, GAO discussed the preliminary findings of its current study on acid rain which is to be completed this fall. The study consists mainly of an analysis and synthesis of scientific and economic information and an examination of the cost implications of alternative acid deposition control strategies. Three central issues were addressed: (1) present and anticipated damages due to acid deposition; (2) causes of acid deposition; and (3) costs and other effects of proposed solutions. GAO found that, in almost all damage categories, the lack of economic as well as scientific data has made it difficult to establish reliable answers to questions concerning the potential severity of acid rain and the timeframe necessary to take corrective action. A major cause of acid deposition is the burning of fossil fuels, and global patterns show that eastern North America contains a high amount of acid rain. This is a relatively new pattern, not seen before the industrial revolution. Studies show that each country provides the largest single share of its own deposition, and emissions from any source will spread in the direction of prevailing winds; however, further research in these areas is necessary to achieve accurate quantitative results. In studying possible control actions in terms of proposed legislation, GAO found that: (1) setting state-by-state emission reduction targets and employing a diverse number of methods would be more cost-effective than prescribing a single nationwide control method; (2) higher levels of reduction rapidly increase costs; (3) a program to reduce sulphur dioxide emission by about 10 million tons per year in the eastern United States would cost approximately 3 to 4.5 billion 1980 dollars annually; (4) the program's impact on coal production and employment would depend heavily on the combination of control methods used; and (5) electricity rate increases in states most affected by a 10-million-ton reduction program would likely average 10 to 15 percent.
