Environmental And Health Safety Regulations Productivity Growth And Economic Performance

This title was first published in 2002. How expensive is environmental regulation and how does it affect the economy? A proper understanding of the costs imposed by environmental regulation is important for policy-makers and others concerned with regulatory design. This book focuses on empirical studies of the impact of environmental regulation on the economy, exposing the reader to a variety of estimation methodologies and datasets that have been used in this area. Three basic sources provide information on the costs of environmental regulation: surveys; engineering studies; and econometric analysis. This text draws on all three in its investigation.

Since the early 1970s, observers have noted that complying with environmental regulations might be a significant new factor in determining the locations of industries involved in world trade. Two related hypotheses have been offered to explain how environmental regulations are altering international comparative advantage in industrial production: first, that stringent regulations push industries out of the United States and other advanced industrial nations; second, that less developed countries compete to attract multinational industries by minimizing their own regulations.

Reviews of the literature on historical and theoretical developments of technology and economic growth including productivity measures, technical knowledge, technological spillovers and stock market reactions to technology investment.

We are in the second decade of modem environmental law. By some indicators this body of regulation has matured greatly. We can point to statutes and codes at the federal, state, and local levels which address almost every conceivable form of pollution and environmental insult. Yet, despite the existence of this large body of law, despite considerable expenditures on enforcement, and despite the energetic efforts of people sympathetic to environmental objectives, violations are numerous. Serious pollution problems are commonplace. Love Canal, the Valley of the Drums, Times Beach, and Stringfellow Acid Pits epitomize the national environmental quality challenge. Daily, a major illegal disposal of haz ardous waste is recorded; a new mismanaged dump site is discovered; a toxic substance is found in our drinking water; or a failure to meet a water or air quality standard is identified. Many of these violations involve American business. Failures to comply are of several types. A small businessman in Pennsylvania mistakenly allows a spillover of a pollutant into a protected stream. An industrialist in the Midwest adds to his fortune by illegally dumping dangerous chemicals. A series of errors by several firms, some of which no longer exist, combine to create a health threatening conflagration on the West Coast. An automobile company interprets one of the almost innumerable air pollution rules differently from government: It produces a car which the government says fails to comply with the Clean Air Act.