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.

Our four categories of 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.

(many benefit…many pay) 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 coal-burning 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.

In general, environmental policy is difficult for politicians….why? Enviro Policy In general, environmental policy is difficult for politicians….why? 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”?

THE FEDERAL GOV’T AGENCY SET UP TO DEAL WITH ALL THIS 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!