1. Chapter 3 Notes Environmental History 7 min
Connection to Economics and Pollution 4 min
History of Environmental Policy (3 min)
United States before EPA. (Warning: profane language- very political)
Great review of EPA regulations history (10 min) 2013
Education Portal on Regulations
Bozman Environmental Economics 10 min

2. 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.

3. 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.

4. 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)

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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.

13. 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

14. 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

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

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

17. 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.

18. 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

19. 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

20. 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

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

22. 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)
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

24. 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

25. 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?

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

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

29. 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.

30. 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

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

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

33. 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

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

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