Chapter 3: Environmental Policy

Environmental policy Policy: Formal set of plans and principles intended to address problems and guide actions Public Policy: Policy made by governments that include laws, regulations, orders, incentives and practices intended to advance social welfare Environmental Policy: policy that pertains to human interactions with the environment Regulates resource use or reduce pollution

Environment policy Address common welfare: Example of Tijuana River watershed in you book Equity an resource use Little incentive for businesses to minimize environmental impact (market failure) Tragedy of the commons (pp. 5-6 of textbook) Unregulated common resources will eventually be overused and degraded

Environmental policy and equity Free Riders = reducing pollution tempts any one person to cheat Private voluntary efforts are less effective than mandated efforts External Cost = harmful impacts result from market transaction but are borne by people not involved in the transaction Environmental policy goals = protect resources against the tragedy of the commons and to promote equity by eliminating free riders and addressing external costs

Why are environmental laws unpopular? Environmental laws are challenged, derided, and ignored Environmental policy involves government regulations Businesses and individuals view laws as overly restrictive and unresponsive to human needs Most environmental problems are long-term processes Human behavior is geared toward short-term needs News media have short attention spans Politicians act out of their own short-term interest

Quick government review Legislative branch (Congress) creates and enacts legislation Executive branch (President) approves legislation and enforces the laws can also issue executive orders for government agencies Agencies are sometimes called the “fourth branch” because they are the source for many policies Judicial branch (Supreme court and lower courts) interprets laws and can modify policy or law enactment

State and local policies affect environmental issues Important environmental policy is also created at the state and local levels State laws cannot violate principles of the U.S. Constitution, If laws conflict, federal laws take precedence California, New York, and Massachusetts have strong environmental laws The interior western states put less priority on environmental protection and favor unregulated development

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

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

The second wave of U.S. policy Addressed impacts caused by the first wave Public perception and government policy shifted Mitigated environmental problems associated with westward expansion Yellowstone National Park, the world’s first national park, opened in 1872 Other protected areas were created National wildlife refuges, parks, and forests Reflected a new understanding that the West’s resources were exhaustible and required legal protection

The third wave of U.S. environmental policy Mid-to late-20th century Better off economically But dirtier air, dirtier water, and more waste and toxic chemicals Increased awareness of environmental problems shifted public priorities and policy 1962: Silent Spring (by Rachel Carson) described the negative ecological and health effects of pesticides and industrial chemicals

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

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

The EPA shifts environmental policy Nixon created the Environmental Protection Agency (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 and supported tougher environmental legislation

The social context for policy can change Three factors converged to allow major advances in environmental policy in the 1960s and 1970s Wide evidence of environmental problems People could visualize policies to deal with problems The political climate was ripe, with a supportive public and leaders who were willing to act In recent years, the political climate has changed People felt burdened by environmental regulations Attempts have been made to roll back or weaken environmental laws

The Earth Summit It centered on the idea of sustainable development Rio de Janeiro, Brazil, in 2002 The largest international diplomatic conference ever held It centered on the idea of sustainable development This fourth wave of environmental policy focuses on sustainable development Finding ways to safeguard natural systems while raising living standards for the world’s poorest people

International Environmental Policy International issues can be addressed through creative agreements Montreal Protocol: nations agreed to reduce ozone-depleting chemicals Kyoto Protocol: reduces fossil fuel emissions causing climate change An international wastewater treatment plant

Organizations help shape international policy International organizations influence the behavior of nations Providing funding, applying peer pressure, directing media attention United Nations Environment Programme (UNEP) = helps nations understand and solve environmental problems The European Union seeks to promote Europe’s unity and economic and social progress Can enact binding regulations Can also issue advisory directives

The World Trade Organization (WTO) Represents multinational corporations to promote free trade Has authority to impose penalties on nations the don’t comply with its directives Interprets some environmental laws as unfair barriers to free trade Brazil and Venezuela filed a complaint against the U.S. EPA’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

NGOs and the World Bank Nongovernmental Organizations (NGOs) = entities that influence international policy Some do not get politically involved Others try to shape policy through research, lobbying or protest The World Bank = one of the world’s largest funding sources for development Dams, irrigation, infrastructure Funds unsustainable, environmentally damaging projects

Science plays a role, but can be politicized Effective policy decisions are informed by scientific research Sometimes policymakers ignore science They let political ideology determine policy Scientists at government agencies have had their work suppressed or discredited Their jobs were threatened When taxpayer-funded research is suppressed or distorted for political ends, everyone loses

Environmental Policy Process Next class, you will be discussing the six steps involved in creating an Environmental Policy Again, you will be graded on your input to the discussion and your preparedness

Approaches to environmental policy Command-and-control approach: environmental policy sets rules or limits and threatens punishment for violators Heavy-handed Alternative approaches involve using economic incentives to encourage desired outcomes and use market dynamics to meet goals Most current environmental laws Have resulted in safe, healthy, comfortable lives

Drawbacks of command-and-control Government actions may be well-intentioned but not informed Interest groups–people seeking private gain–unduly influence politicians Citizens may view policies as restrictions on freedom Costly and less efficient in achieving goals

Widespread economic policy tools Tax breaks = encourage desirable industries or activities Subsidy = a government giveaway of cash or resources to encourage a particular activity Have been used to support unsustainable activities In 2003, $58 billion of taxpayer’s money was spent on 68 environmentally harmful subsidies such as building logging roads

Another economic policy tool Green taxes = taxes on environmentally harmful activities Polluter pays principle = the price of a good or service includes all costs, including environmental degradation Gives companies financial incentives to reduce pollution But, costs are passed on to consumers

Market permitting and incentives Permit trading = government-created market in permits Businesses buy, sell, trade these permits Emissions trading system = government-issued permits for an acceptable amount of pollution and companies buy, sell, or trade these permits with other polluters Cap-and-trade system = a party that reduces its pollution levels can sell this credit to other parties Pollution is reduced overall, but does increase around polluting plants Companies have an economic incentive to reduce emissions