Environmental Policy
Why so controversial?!
• Creates winners and losers
– No one wants to change lifestyle. Who here is
going to rely on public transportation instead of
driving?!
• Scientific Uncertainty
– Always gonna have your doubters!
• Takes the form of entrepreneurial politics
– Small group pays, all benefit.
• Decisions affect federal and international
relations
– Often left up to the states
Environmental Policy
…in the USA 2 factors make it different
than in other nations:
#1. EP is much more adversarial in
the US than in other nations.
*business v govt
*nation v states
#2. EP is heavily dependent
on State politics.
Enviro Policy
Our four categories of politics
each have an example in EP…
#1. ENTREPRENEURIAL POLITICS
(many benefit, a small group pays)
Example Issues?
“GLOBAL WARMING”
“ENDANGERED SPECIES”
Solutions for each would involve
costs for a specific group(s)…
and perceived benefits for all.
Enviro Policy
#2. MAJORITARIAN POLITICS
(many benefit…many pay)
Example Issue?
“AIR POLLUTION FROM CARS”
Rules reducing car emissions, like
the Clean Air Act 0f 1970,
affect the price and features of cars.
The problem is…most Americans will support tougher
pollution laws UNLESS they must bear the costs!
- Example? Higher gas taxes.
Enviro Policy
#3. INTEREST GROUP POLITICS
(smaller group benefit, smaller group pays)
Example Issue?
“ACID RAIN”
The impact of acid rain is predominantly in the
Northeast USA/Canada. The chief cause of acid rain are coalburning power plants in the Upper Midwest US/Canada. Laws
were passed requiring “scrubbers” and use of low sulfur coal.
But this is complicated!
- The cause of acid rain is
100’s of miles away from
the impact!
- It also involves another nation!
Enviro Policy
#4. CLIENT POLITICS
(small group benefits, majority pays)
Example Issue?
“PESTICIDES”
Farming industry has fought
gov’t regulation of pesticides,
which have a direct impact on
farming profits. 50,000+ pesticides are
currently in use, and few have ever been
banned…example? DDT in 1972.
Enviro Policy
In general, environmental policy is difficult
for politicians….why?
1. What is the problem? Sometimes
it’s clear (DDT) sometimes it’s
subtle (acid rain)
2. What would be our goal in regards to the problem? How
clean is clean? What level of pollutants is OK? Sometimes
problem is too expensive to fix!
3. How do you go about solving the problem? Gov’t rules?
Let the market push change…like “going green”?
Enviro Policy
THE FEDERAL GOV’T AGENCY
SET UP TO DEAL WITH ALL THIS
IS THE ENVIRONMENTAL
PROTECTION AGENCY …the “EPA”
It has the responsibility to administer laws, and does
so with a “COMMAND AND CONTROL” approach.
- Improve air/water quality with precise
standards rules, and penalties.
SOME WAYS TO PLAY WITH THESE RULES?
Enviro Policy
There are ways to work within existing EPA rules/standards
OFFSETS: Wanna pollute? You have to reduce the
existing amount of pollution in the area somehow…
BUBBLE STANDARD: An overall amount of pollution.
A factory can decide which pollutants are adjusted to
meet that overall amount.
POLUTION ALLOWANCE/BANK: If your plant is below
a pollution standard, it can use the excess at another
location or sell it as an offset!