Chapter 3 Notes Environmental History 7 min https://www.youtube.com/watch?v=iNQDd4x1k1Y Connection to Economics and Pollution 4 min https://www.youtube.com/watch?v=LMoqt7dj4Fw History of Environmental Policy (3 min) https://www.youtube.com/watch?v=_16gKx_wB-M United States before EPA. (Warning: profane language- very political) https://www.youtube.com/watch?v=Tz52q6f9RcA Great review of EPA regulations history (10 min) 2013 http://www.youtube.com/watch?v=sQ7F3t1b17s&safe=active   Education Portal on Regulations http://education-portal.com/academy/lesson/incentive-based-regulatory-approaches-environmental-taxes-tradable-permits.html#lesson Bozman Environmental Economics 10 min http://www.bozemanscience.com/ap-es-021-environmental-economics

Review Chapter 1: Citizens are searching for a solution to the problems of sustainability and satisfying the “Triple Bottom Line” (Social, Ecological, Economic) Chapter 2: Decisions are based on a Cost/Benefit Analysis The values that impact decisions are as varied as the worldviews. The Economic Market Value (Buyer and Seller Transaction) has the most impact in decision making in our society.

A case for regulation Sustainable solutions can only be achieved if we move from a neoclassical economic model to an Environmental or Ecologic economic model. Move from using a growth-based GDP to an inclusive GPI economic measurement system To create Sustainable solutions we must find a way to include long term external costs and benefit in the market relationship between buyers and sellers. Regulations are required if we are to achieve sustainability.

Environmental policy Environmental Policy = pertains to human interactions with the environment Regulates resource use or reduce pollution Addresses the Triple Bottom Line Environment Economics Society (Fairness/Environmental Justice)

History of Environmental Policy First Wave Encourages Growth, Expansion, Extraction of mineral and resource wealth, population growth, destruction of habitat. Nature is an obstacle to be overcome. Nature is to be used without regard for sustainability. General Land Ordinances of 1785 and 1787 Homestead Act of 1862 Mineral Lands Act of 1866 General Mining Law of 1872 Timber Culture Act

Early U.S. environmental policy Involved management of public lands, 1780s to the late 1800s Promoted settlement Extraction of natural resources Increased prosperity Relieved crowding in Eastern cities Displaced millions of Native Americans People believed that land was infinite and inexhaustible

Second Wave A response to the first wave Promotes conservation of resources and preserves habitats. Protects forests, watersheds, etc. National Parks established (Antiquities Act) National Forests (National Forest Act) Wildlife Preserves (Fish and Wildlife Act) Soil Conservation Act Wilderness Act of 1964

Third Wave A response to the development and production of chemical pollutants in the air, water, and soil in the 30’s, 40’s, and 50’s and the toxic effects of chemicals on the environment, wildlife and Humans. Rachel Carson “Silent Spring” Burning of the Cuyahoga River Oil Spills in Santa Barbara, California Smog and Poor Air Quality in Cities Acid Rain Ozone Layer Depletion NEPA Clean Water Act Clean Air Act Toxic Substances Control Act

Modern U.S. environmental policy The Cuyahoga River was polluted with oil and industrial waste It caught fire in the 1950s and 1960s Today, public enthusiasm for environmental protection remains strong The majority of Americans favor environmental protection In April, millions of people celebrate Earth Day

Fourth Wave? A response to the awareness of the limited resources in the world Peak Oil – that we may run out of oil Overpopulation Inadequate Food Production Sustainability Efforts Climate Change

NEPA: The Greatest Regulatory Change (National Environmental Policy Act, 1970) Required an Environmental Impact Statement (EIS) before any federal project can proceed. Requires public notification Must respond to public concerns Established the Environmental Protection Agency (EPA) Consolidated all environmental agencies under one agency to give it more coordination and greater impact. Allowed public citizens/organizations to bring lawsuits against the government if it doesn’t comply with the laws.

The National Environmental Policy Act (NEPA) 1970 began the modern era of environmental policy Created the Council on Environmental Quality Requires an Environmental Impact Statement (EIS) for any federal action that might impact the environment NEPA forces the government and businesses to evaluate the environmental impacts of a project

5 functions of the EPA Conducting and Evaluating Research on the environment Monitoring environmental quality Setting and Enforcing standards for pollution levels Assisting States in meeting standards and goals Educating the public

Significant environmental laws The public demanded a cleaner environment and supported tougher environmental legislation

CEQA California Environmental Quality Act Requires an Environmental Impact REPORT (EIR) for State Projects

Legal Stuff Tort law (lawsuits) were not effective because as long as the costs of the pollution was less than the costs of cleaning up the pollution the cases were lost. Legislative Acts were effective because the government has the right to issue permits Regulatory Takings – the government cannot, through regulation, deprive a person or company of the value of its resources without compensation. This protects businesses.

Constitutional amendments and environmental law Fourteenth Amendment of the U.S. Constitution Prohibits denying “equal protection of its laws” It’s the Constitutional basis for the environmental justice movement Fifth Amendment = takings clause Bans the literal taking of private property Also bans regulatory take, which deprives a property owner of economic uses of the property There is a sensitive balance between private rights and the public good

Solutions to Environmental Problems of Sustainability Bring external costs and long term costs into the Market (the relationship between the buyer and seller) Requires Regulation and Enforcement Three types of solutions: Command and Control Volunteer Market-based

Non-market Regulation “Command and Control” Sets strict limits with strict penalties (Fines, Jail, Shut down business) Immediate, Certain results, no free riders Problems Created: Sometimes Difficult or costly to enforce Little flexibility for creative solutions (One size fits all) Benefits limited to rules (only do what is asked) Creates a political backlash or resentment of environmental protection May not meet the economic standards of the Triple Bottom Line

Voluntary Restrictions Allows for creative solutions Weak enforcement Free Riders cause system to breakdown

Market-Based Regulations Involves the Market (the buyers and sellers) in enforcing regulations Taxes/Tax Breaks/Green Taxes Subsidies/Incentives Cap and Trade (Permit Trading or Emission Trading) Cap and Trade (Story of Stuff) Cap and Trade is not working (10 min) https://www.youtube.com/watch?v=oR3ELe4qPAU Offsets (creates a market for activities that improve the environment) Eco labeling (Creates a market for products that are sustainable) Benefits: Allows creative solutions, no backlash Problems: Take time, not complete

Pro and Con of a Market Based Approach Less expensive to regulate Creates more innovative solutions Solutions can improve environmental quality beyond the goal of the regulation Less backlash (usually business-friendly) Slower to get results Allows some harm to the environment

Free Rider someone who enjoys the benefits of an activity without paying for it. The term free rider comes from the example of someone using public transportation without paying the fare. If too many people do this, the system will not have enough money to operate. Another example of a free rider is a factory who does not reduce his or her share of pollutants because of costs. If too many factories do this the regulations are ineffective. How do you reduce free riders?

Political Influences on Policy Lobbying Campaign Contributions Revolving Door Politicizing Science-Political Appointed Agency Executives change or hide scientific reports they don’t like.

Science’s influence on Policy Research, Measurement, Peer Review, Objectivity, Accuracy Not influenced by economic or cultural values or worldviews

Role of the Judiciary Laws cannot be enforced by the courts unless a citizen or organization brings a lawsuit. For environmental laws to be effective, citizens or organizations must use the courts as a “TOOL” to force polluters to comply with the laws.

Legislators Pass Laws Judicial Branch Is a TOOL used by individuals and organizations to force the executive branch to follow the law Executive Branch enforces laws and makes specific rules if they are clearly written in the law

International Environmental Regulations International Treaties Environmental Tariffs International Laws Montreal Protocol Kyoto Protocol Paris Climate Accords

International Organizations that affect Environmental Policy World Bank World Monetary Fund United Nations (UN) European Union (EU)

Influence of NGO’s Business, Consumer or Industry Organizations Sustainable Forestry Initiative SFI Forest Stewardship Council FSC Marine Stewardship Council MSC Chambers of Commerce Other industrial organizations American Plastics Council

NGO’s (Non- governmental Organizations) World Wildlife Fund Nature Conservancy Green Peace Sierra Club Audubon Society

Private Organizations Public (NGO’s) Primary Influence Science Voting Lobbying Campaigning Protesting Courts/Lawsuits Government Policy Regulation Private Organizations (Industry Groups)