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The Economic Impact of Environmental Regulation
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The Economic Impact of Environmental Regulation
Giang Nam
67
24
pdf
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Transportation investment affects the economy through two fundamental mechanisms: (1) impacts of spending -- the act of investing money in public transportation facilities and operations supports jobs and income for that industry, as well as jobs and income in supplier industries and other affected elements of the economy; (2) costs and productivity impacts – the public transportation services that are enabled by that investment provide enhanced mobility, time and cost savings; leading to broader economic growth occurs as a result of changes in disposable household income, business productivity and market access. . | The Economic Impact of Environmental Regulation by Stephen M. Meyer1 The political debate over environmental policy has never been as contentious or rancorous as it is today. In Washington the new Congress is moving swiftly to roll back twenty-five years of environmental legislation and regulation. Less noticed by the national media but perhaps of even greater significance are moves toward environmental deregulation underway in statehouses across the country. Driving these efforts is the widely held belief that three decades of creeping environmental controls has strangled the economy and undermined economic competitiveness. Still reeling from the recession of the early 1990s many state governments hope that untying the environmental regulatory knot will unleash a new burst of economic growth. Of course environmental deregulation will not be cost-free. Steady progress toward cleaner air water and land will be slowed significantly if not reversed. While this may be of small concern in still pristine states such as Wyoming the implications for public health ecology and the quality of life in states such as New Jersey are more dire. Protection and preservation of rapidly vanishing wildlife plants habitats and ecosystems will be weakened nationwide. Undoubtedly we will lose parts of America s natural heritage that might otherwise have endured. Nevertheless the economic gains forthcoming from environmental deregulation might well be worth the price. All which begs the question What magnitude of economic gains should we expect from environmental deregulation Are we talking about fractions of a percent growth in jobs A doubling of growth rates Amazingly no one seems to know. Given the high stakes involved the reader might find it unsettling to learn that credible evidence supporting this policy shift is virtually non-existent. To be sure anecdotes about companies ruined by environmental regulation abound. Yet they provide no clues regarding the likely economic benefits .
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