The Clean Air Act was amended in 1990 and was established to boost local air quality by focusing on polluting sources. In the regions with poor air quality, polluting industries are required to make extra investments in pollution reduction. The research on the industry level indicated that these requirements affect the output and location of polluting industries. Therefore, the Clean Air Act was enacted to regulate pollutants, which are known as criteria pollutants. The policy should abide with the permitted levels for each criteria pollutant. In the case a locality fails to meet the set standards over a three-year period, ...
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