Southern Co, electric power companies, is planning its compliance with the 1990 amendments to the Clean Air Act. The law established a system of tradeable permits for sulfur dioxide emissions. The company must decide whether to install pollution control equipment and the creation of excess permits to sell to other firms or to emit large amounts of sulfur dioxide, excluding capital costs, and the purchase of pollution permits. Can be used for training discounted cash flow analysis on the brand than buy a solution. Also raises questions of the expected cost minimization, the issue of economic and political uncertainty, and the value of flexibility. "Hide
by Forest Reinhardt Source: HBS Premier Case Collection 7 pages. Publication Date: 04 Feb 1992. Prod. #: 792060-PDF-ENG
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