ENVIRONMENTAL POLICY ENVIRONMENTAL POLICY Once society agrees that

ENVIRONMENTAL POLICY

ENVIRONMENTAL POLICY Once society agrees that a problem exists, it may persuade its leaders to solve it through policy Policy: a formal set of general plans and principles to address problems and guide decision making Public policy: governmental laws, regulations, orders, incentives, and practices to advance societal welfare Environmental policy: pertains to human interactions with the environment § Regulates resource use or reduces pollution § To promote human welfare and/or protect resources

POLICY IMPACTS ENVIRONMENTAL PROBLEMS Science, ethics, and economics help formulate policy § Science: provides information and analysis § Ethics and economics: clarify how society can address problems Government interacts with § Citizens, organizations, and the private sector

POLICIES PREVENT THE TRAGEDY OF THE COMMONS Capitalist markets are driven by short-term profit § Not long-term social or environmental stability § Little incentive to minimize impacts § Market failure justifies government intervention Environmental policy tries to protect environmental quality and natural resources § While promoting equity or fairness in resource use Tragedy of the commons: commonly held resources will become overused and degraded § Best prevented by restriction of use and management

ENVIRONMENTAL POLICIES PREVENT FREE RIDERS AND EXTERNAL COSTS Free riders: people are tempted to cheat and not participate in sacrificing to protect the environment § An entity gets a “free ride” by avoiding sacrifices made by others § Private voluntary efforts are less effective than public policies, where everyone sacrifices Environmental policies also promote fairness by eliminating external costs § Policies ensure that parties do not use resources in ways that harm others

FRAMEWORK OF U. S. ENVIRONMENTAL POLICY The U. S. is a good model to understand environmental policy § It has pioneered innovative policies § Its policies serve as models for other countries § Understanding federal policy helps us understand it at local, state, and international levels Congress passes legislation (statutory law) § It is signed into law by the president Laws are implemented and executed by agencies § Regulations: specific rules to achieve objectives of broadly written statutory laws

STATE AND LOCAL GOVERNMENTAL POLICIES The structure of the federal government is mirrored at the state level But state laws cannot violate principles of the U. S. Constitution § If laws conflict, federal laws take precedence California, New York, New Jersey, and Massachusetts have strong environmental laws § Well-funded agencies § Citizens value protecting the environment

TYPICAL LAWS FROM THE 1780 S TO LATE 1800 S • Homestead Act (1862): anyone could buy or settle on 160 acres of public land Insert Fig. 5. 10 a

TYPICAL LAWS FROM THE 1780 S TO LATE 1800 S • General Mining Act (1872): people could mine on public land for $5/acre with no government oversight

TYPICAL LAWS FROM THE 1780 S TO LATE 1800 S • Timber Culture Act (1873): encouraged the timber industry to clear-cut ancient trees with little government policy to limit logging or encourage conservation

THE SECOND WAVE OF U. S. POLICY Public perception and government policy shifted § Laws addressed problems caused by westward expansion and encouraged conservation Congress created Yellowstone National Park, the world’s first national park, in 1872 § Also, national parks, forests, and wildlife refuges Understood that the nation’s resources were exhaustible § They required legal protection Land management policies addressed soil conservation The 1964 Wilderness Act preserves pristine land

THE THIRD WAVE OF U. S. ENVIRONMENTAL POLICY In the 20 th century, people were better off economically § But lived with dirtier air, dirtier water, and more waste and toxic chemicals Events increased awareness of environmental problems and shifted public priorities and policies Rachel Carson’s Silent Spring (1962) described the ecological and health effects of pesticides and chemicals

MODERN U. S. ENVIRONMENTAL POLICY Ohio’s Cuyahoga River was so polluted that it caught fire in the 1950 s and 1960 s § The public demanded more environmental protection Today, U. S. health is better protected and the air and water are cleaner mainly because of policies of the 1960 s

THE NATIONAL ENVIRONMENTAL POLICY ACT (1970) NEPA began the modern era of environmental policy § It created the Council on Environmental Quality Requires an Environmental Impact Statement (EIS) § For any federal action that might significantly impact the environment § To assess the environmental impacts of any federally-funded project An EIS usually does not halt projects § Provides incentives to decrease damage § Grants citizens input into the policy process

THE EPA SHIFTS ENVIRONMENTAL POLICY In 1970, President Nixon’s executive order created the Environmental Protection Agency (EPA) § To develop an integrated approach to environmental policy The EPA: § § § Conducts and evaluates research Monitors environmental quality Sets and enforces standards for pollution levels Assists states in meeting standards and goals Educates the public

SIGNIFICANT ENVIRONMENTAL LAWS The public demanded a cleaner environment § Environmental problems needed tough regulations Thousands of laws protect health and environmental quality in the U. S.

ENVIRONMENTAL POLICY CHANGES OVER TIME Major advances in environmental policy in the 1960 s and 1970 s occurred because: § Strong evidence of environmental problems existed § People could visualize policies to deal with problems § The political climate was ripe, with a supportive public and leaders who were willing to act Pictures of Earth from space made us aware that our planet was finite

MANY REACTED AGAINST REGULATION By 1990, many felt that regulations were too strict § Imposed economic burdens on people and businesses George W. Bush and the Republican-controlled Congresses (1994– 2006) tried to weaken laws “The Death of Environmentalism” (2004): the environmental movement has to be reinvented § It must appeal to core values with an inspiring vision This new outlook helped elect President Obama in 2008

ORGANIZATIONS SHAPE INTERNATIONAL POLICY • International organizations influence nations through: – Funding, economic or political pressure, and media attention • United Nations (UN): plays an active role in policy – Sponsors conferences, coordinates treaties, publishes research • UNEP (United Nations Environment Programme) promotes sustainability – Research, outreach activities – Provides information to policymakers and scientists

THE WORLD BANK AND EUROPEAN UNION The World Bank: one of the largest funding sources for economic development in poor countries – Dams, irrigation, infrastructure, etc. – Funds unsustainable, environmentally damaging projects The European Union (EU) seeks to promote Europe’s unity and its economic and social progress § § Can sign binding treaties and enact regulations Sees environmental regulations as barriers to trade

THE WORLD TRADE ORGANIZATION (WTO) Represents multinational corporations § Promotes free trade Can impose penalties on nations that don’t comply with its directives Interprets environmental laws as unfair barriers to trade § Brazil and Venezuela filed a complaint against U. S. regulations requiring cleaner-burning fuel § The WTO agreed with Brazil and Venezuela, despite threats to human health Critics charge the WTO aggravates environmental problems

INTERNATIONAL TREATIES CAN WEAKEN PROTECTION International treaties allow industries and corporations to weaken environmental protection laws § They see laws as barriers to trade Under NAFTA, investors can sue a country for lost profits § Canada sued the U. S. for $300 million for banning beef after finding mad cow disease in Canada cows § Canada sued the U. S. for $1 billion for banning MTBE, a dangerous gasoline additive § The U. S. forced Mexico to pay $16 million and reopen a toxic waste dump

NGOS Nongovernmental organizations (NGOs): entities that influence international policy Some do not get politically involved § Example: The Nature Conservancy Others try to shape policy through research, education, lobbying, or protest § Example: Conservation International, the World Wide Fund for Nature, Greenpeace, Population Connection

SEVEN STEPS TO MAKING ENVIRONMENTAL POLICY Theoretically, in the U. S. , everyone has a voice and can make a difference § But money wields influence § Some people and organizations are more influential than others Creating environmental policy has several steps § Requires initiative, dedication, and the support of many people

STEP 1: IDENTIFY A PROBLEM Requires scientific inquiry and data collection

STEP 2: PINPOINT CAUSES OF THE PROBLEM • Involves scientific research

STEP 3: ENVISION A SOLUTION Science plays a vital role here, too Solutions also require social or political action

STEP 4: GET ORGANIZED Organizations are more effective than individuals § But a motivated, informed individual can also succeed

STEP 5: CULTIVATE ACCESS AND INFLUENCE • People gain access to policymakers and influence them through lobbying and campaign contributions – Professional lobbyists are employed by businesses and organizations – Anyone can donate money to a candidate

STEP 6: SHEPHERD THE SOLUTION INTO LAW Prepare a bill, or draft law, containing solutions Find members of the House and Senate to introduce the bill and shepherd it through committees The bill may become law or die in various ways

HOW A BILL BECOMES LAW Before a bill becomes law, it must clear multiple hurdles

STEP 7: IMPLEMENT, ASSESS, AND INTERPRET POLICY Following a law’s enactment § Administrative agencies implement regulations § Policymakers evaluate the policy’s successes or failures § The courts interpret the law

SCIENCE PLAYS A ROLE, BUT CAN BE POLITICIZED A nation’s strength depends on proper use of science § Governments use some tax money to fund research Sometimes policymakers let ideology determine policy § Politicians ignore scientists and mislead the public § Government scientists have had their work censored, suppressed, or edited and their jobs threatened § Unqualified people are put into powerful positions Scientifically literate citizens must ensure that our government uses proper use of science When taxpayer-funded research is suppressed or distorted for political ends, everyone loses

THREE MAJOR TYPES OF POLICY APPROACHES • Environmental policy has 3 major approaches: – Lawsuits – Command-control – Economic policy tools

STRATEGY: LAWSUITS IN THE COURTS Before legislation, lawsuits addressed U. S. policy issues § Individuals suffering from pollution sued polluters in court § Courts make polluters stop or pay fines Industrialization and population growth made it harder to control pollution § Also, justices were reluctant to hinder industry People saw legislation and regulation as more effective in protecting health and safety

STRATEGY: COMMAND CONTROL Command-control approach: a regulating agency prohibits actions, or sets rules or limits § Threatening punishment for violators This is the approach used for most environmental laws and regulations enforced by agencies today This simple approach has worked well § It brings cleaner air, water, safer workplaces, and healthier neighborhoods

STRATEGY: ECONOMIC POLICY TOOLS People don’t like the top-down approaches that dictate particular solutions to problems Alternative approaches channel innovation and economic policies to benefit the public: § Promote desired, and discourage undesired, outcomes § Encourage market competition to produce new solutions at lower cost Strategies include: § Green taxes, subsidies, permit trading, and ecolabeling

GREEN TAXES DISCOURAGE UNSUSTAINABILITY Governments use taxes to benefit the public § Internalizing harmful external costs makes them part of the cost of doing business Green taxes: tax environmentally harmful activities and products § Businesses reimburse the public for damage they cause § The more pollution, the higher the tax payment Companies have financial incentives to reduce pollution with freedom to decide how to do so § But costs are passed on to consumers

WHO SHOULD PAY FOR POLLUTION? Green taxes are not widely supported in the U. S. § Other “sin taxes” (e. g. , on cigarettes and alcohol) are tools of U. S. social policy Polluter-pays principle: the party that pollutes is held responsible for covering the costs of its impacts § Widely used in Europe Carbon taxes: controversial taxes on gasoline, coal-based electricity, and other fossil fuels § Used to fight climate change

SUBSIDIES PROMOTE CERTAIN ACTIVITIES Subsidy: a government giveaway of cash or resources to encourage a particular industry or activity § Tax break: helps an entity by relieving its tax burden Subsidies can promote sustainability, but they have been used to support unsustainable activities The U. S. subsidizes logging, grazing, and mining – Benefits private parties while degrading publically held resources Nations give $1. 45 trillion per year in harmful subsidies U. S. fossil fuel companies received $72 billion taxpayer money (2002– 2008)—renewable energy received $29 billion

PERMIT TRADING SAVES MONEY Permit trading: a government-created market in permits for an environmentally harmful activity § Businesses buy, sell, or trade these permits • Cap-and-trade emissions trading system: the government sets pollution levels (“caps”) § Permits let polluters emit some amount of pollution • Polluters can exchange (sell) permits – The government can set lower emission levels Companies have an economic incentive to reduce emissions

A CAP-AND-TRADE SYSTEM FOR AIR POLLUTION One U. S. cap-and-trade system decreased sulfur dioxide emissions Cuts were obtained more cheaply than expected § With no effects on electricity supply or economic growth Billions of dollars per year are saved § Benefits outweigh costs 40 to 1

ECOLABELING EMPOWERS CONSUMERS Uses the marketplace to counteract market failures Ecolabeling: tells consumers which brands use environmentally benign processes § Dolphin-safe tuna, labeling recycled paper, etc. Ecolabeling is a powerful incentive for businesses to change

MARKET INCENTIVES WORK AT THE LOCAL LEVEL Municipalities charge residents for waste disposal § According to the amount of waste generated Cities tax disposal of costly items (tires, motor oil) Some cities give rebates for buying water-efficient appliances Power utilities give discounts to those buying efficient lightbulbs and appliances § It is cheaper than expanding generating capacity

CONCLUSION Environmental policy is a problem-solving tool § It uses science, ethics, and economics Conventional command-control approach uses legislation and regulations to make policy § It is the most common approach § Innovative economic policy tools are being developed Environmental and ecological economists quantify the value of ecosystem services Economic well-being does not need a trade-off with environmental quality