ENVIRONMENTAL POLICY

Why is environmental policy so Why is environmental policy so

controversial?controversial?

Creates both winners and losers Creates both winners and losers – Losers may be interest groups or average Losers may be interest groups or average

citizens citizens – Losers may not want to pay costsLosers may not want to pay costs

Example: auto exhaust controlExample: auto exhaust control

Shrouded in scientific uncertaintyShrouded in scientific uncertaintyExample: greenhouse effect Example: greenhouse effect

Takes the form of entrepreneurial politics Takes the form of entrepreneurial politics – Encourages emotional appeals: "good guys" Encourages emotional appeals: "good guys"

versus "bad guys" versus "bad guys"

THEME A

POLITICS OF ENVIRONMENTAL

PROTECTION

I. MAJORITARIAN POLITICS: Distributed benefits, distributed costs

A. Gives benefits to large numbers. B. Distributed costs to large numbers

II. INTEREST GROUP POLITICS: Concentrated benefits, concentrated costs.

A. Gives benefits to relatively small group. B. Cost imposed on another small group

III. CLIENT POLITICS: Concentrated benefits, distributed costs

A. Relatively small group benefits B. Costs distributed widely C. Most people unaware of costs

IV. ENTREPRENEURIAL POLITICS: distributed benefits, concentrated costs

A. Gives benefits to large number B. Cost imposed on small group C. Success depends on people who work for unorganized majorities - Ralph Nader, Rachael Carson

The American contextThe American context

– Environmental policy is shaped by Environmental policy is shaped by unique features of American politics unique features of American politics

More adversarial than in Europe More adversarial than in Europe – Rules are often uniform nationally (auto Rules are often uniform nationally (auto

emissions) emissions) – But require many regulators and rules, strict But require many regulators and rules, strict

deadlines, and expensive technologies deadlines, and expensive technologies – Often government (pro-) versus business (anti-) Often government (pro-) versus business (anti-) – Example: Clean Air Act, which took thirteen Example: Clean Air Act, which took thirteen

years to revise in Congress years to revise in Congress – In England, rules are flexible and regionalIn England, rules are flexible and regional

(1). Compliance is voluntary(1). Compliance is voluntary(2). Government and business cooperate(2). Government and business cooperate

The American contextThe American context

Depends heavily on states Depends heavily on states – Standards are left to states, Standards are left to states,

subject to federal control subject to federal control – Local politics decides allocations Local politics decides allocations – Federalism reinforces adversarial Federalism reinforces adversarial

politics; separation of powers politics; separation of powers provides multiple points of accessprovides multiple points of access

Figure 21.1: Government Figure 21.1: Government Regulation Regulation

Source: Congressional Quarterly Weekly Report (January 20, 1990), 185, updated with Wirthlin Worldwide Survey.

MAJORITARIAN POLITICS: POLLUTION FROM AUTOMOBILES

Many people hope to benefit, but many people (anyone who owns a car) will have to pay the cost.

When People Believe the Costs Are Low Environmental Impact Statements.When People Believe the Costs Are High Gasoline Taxes

INTEREST GROUP POLITICS: ACID RAIN

Regions hurt by acid rain (mainly in the Northeast) argue with regions that product a lot of acid rain (mainly in the Midwest) about who should pay.

CLIENT POLITICS: AGRICULTURAL PESTICIDES

Farmers manage to minimize federal controls over the use of pesticides. Most people are unaware of what foods contain what pesticides or which, if any, are harmful; farmers are keenly aware of the economic benefits of pesticides and are well organized to defend them.

ENTREPRENEURIAL POLICIES: POLLUTION FROM FACTORIES

Many people hope to benefit from rules that impose costs on a few firms.

Entrepreneurial politics gave Entrepreneurial politics gave rise to environmental movement rise to environmental movement

Santa Barbara oil spill, Earth Day Santa Barbara oil spill, Earth Day Led to the formation of EPA and passage of the Led to the formation of EPA and passage of the Water Quality Improvement Act and tougher Clean Water Quality Improvement Act and tougher Clean Air Act in 1970 Air Act in 1970 Two years later Congress passed laws designed to Two years later Congress passed laws designed to clean up water clean up water Three years later Congress adopted the Three years later Congress adopted the Endangered Species Act Endangered Species Act New laws passed into the 1990s New laws passed into the 1990s Existing environmental organizations grew in size Existing environmental organizations grew in size and new ones formed and new ones formed Public opinion rallied behind environmental Public opinion rallied behind environmental slogansslogans

Global warmingGlobal warming

Earth's temperature rises from trapped gases in the Earth's temperature rises from trapped gases in the atmosphere atmosphere Predicted result: floods on coastal areas as the Predicted result: floods on coastal areas as the polar ice caps melt; wilder weather as more storms polar ice caps melt; wilder weather as more storms are created; and tropical diseases spread to North are created; and tropical diseases spread to North America America Activist scientists versus skeptics scientists Activist scientists versus skeptics scientists – Activists agree with predicted results and say we Activists agree with predicted results and say we

should act now, despite scientific doubts should act now, despite scientific doubts – Skeptics say we should learn more before doing Skeptics say we should learn more before doing

anything anything – Survey indicates skeptics outnumber activistsSurvey indicates skeptics outnumber activistsActivists have greatest influence Activists have greatest influence U.S. signed Kyoto Protocol in 1997U.S. signed Kyoto Protocol in 1997

THEME B - TRANSPORTATION AND THE ENVIRONMENT

Much of environmental policy is connected with the nation's transportation system especially to the use of automobiles.

At present, the number of cars in use is increasing two times faster than the rate of population growth. The amount of land nationwide devoted to parking lots is equivalent to the size of the state of Georgia. The largest source of toxins in our air is from Motor Vehicles..

Majoritarian politics: pollution from Majoritarian politics: pollution from automobilesautomobiles

– Clean Air Act imposed tough restrictions Clean Air Act imposed tough restrictions 1975: 90 percent reduction of hydrocarbons and carbon 1975: 90 percent reduction of hydrocarbons and carbon monoxide; 1976: 90 percent reduction in nitrous oxides monoxide; 1976: 90 percent reduction in nitrous oxides Required catalytic convertersRequired catalytic convertersStates were required to restrict public use of cars States were required to restrict public use of cars

– If auto emissions controls were insufficient- parking bans If auto emissions controls were insufficient- parking bans required, implementation of car pools, gas rationing required, implementation of car pools, gas rationing

– Efforts failed: opposition too great Efforts failed: opposition too great – Congress and the EPA backed down, postponed Congress and the EPA backed down, postponed

deadlinesdeadlinesConsumers, auto industry, and unions objected Consumers, auto industry, and unions objected

– Loss of horsepower Loss of horsepower – Loss of competitiveness Loss of competitiveness – Loss of jobsLoss of jobs

The Clean Air Act was weakened in 1977 but revived in 1990 The Clean Air Act was weakened in 1977 but revived in 1990 with tougher standards with tougher standards

Public will support tough lawsPublic will support tough laws

If costs are hidden (catalytic converters)If costs are hidden (catalytic converters)

But not if they have to change habits (car But not if they have to change habits (car pools)pools)

Majoritarian politics when people Majoritarian politics when people believe the costs are low: National believe the costs are low: National Environmental Policy Act of 1969 Environmental Policy Act of 1969

(NEPA)(NEPA)

Requires environmental impact statement (EIS) Requires environmental impact statement (EIS)

Does not require specific action Does not require specific action

Passed Congress with overwhelming support Passed Congress with overwhelming support

But encouraged numerous lawsuits that block or But encouraged numerous lawsuits that block or delay projects delay projects

Popular support remains strong: costs appear Popular support remains strong: costs appear low, benefits highlow, benefits high

Majoritarian politics when people Majoritarian politics when people believe the costs are highbelieve the costs are high

Increased gasoline taxes Increased gasoline taxes – Would discourage driving, save fuel, and reduce Would discourage driving, save fuel, and reduce

smog smog – Most would pay, most would benefit Most would pay, most would benefit – But costs come long before benefits But costs come long before benefits – And benefits may not be obviousAnd benefits may not be obvious

Easier to raise gas tax if benefits are Easier to raise gas tax if benefits are concrete, for example, highways, bridges, concrete, for example, highways, bridges, and so forthand so forth

Interest group politics: acid rainInterest group politics: acid rain

– Source of acid rain Source of acid rain Burning of high-sulfur coal in midwestern factories Burning of high-sulfur coal in midwestern factories Winds carry sulfuric acid eastward Winds carry sulfuric acid eastward Rains bring acid to earthRains bring acid to earth

– Effects of acid rain Effects of acid rain Acidification of lakes Acidification of lakes Destruction of forests Destruction of forests Long-term and some short-term effects are Long-term and some short-term effects are unclearunclear

– Regional battle Regional battle East versus Midwest, Canada versus United States East versus Midwest, Canada versus United States Midwestern businesses deny blame and costsMidwestern businesses deny blame and costs

Interest group politics: acid rainInterest group politics: acid rain– Solutions and compromise Solutions and compromise

Burn low-sulfur coal one alternative Burn low-sulfur coal one alternative – Effective but expensive Effective but expensive – Low-sulfur coal comes from West, high-sulfur coal is localLow-sulfur coal comes from West, high-sulfur coal is local

Install smokestack scrubbers a second alternative Install smokestack scrubbers a second alternative – Costly, not always effective, and leave sludge Costly, not always effective, and leave sludge – But allow use of inexpensive high-sulfur coalBut allow use of inexpensive high-sulfur coal

Congress voted for scrubbers for all new plants Congress voted for scrubbers for all new plants – Including those that burned low-sulfur coal Including those that burned low-sulfur coal – Even if plant was next to low-sulfur coal mineEven if plant was next to low-sulfur coal mine

Political advantages Political advantages – Protected jobs of high-sulfur coal miners; powerful allies in Protected jobs of high-sulfur coal miners; powerful allies in

Congress Congress – Environmentalists preferred scrubbers; "definitive" solution Environmentalists preferred scrubbers; "definitive" solution

to problem to problem – Scrubber manufacturers preferred scrubbers Scrubber manufacturers preferred scrubbers – Eastern governors preferred scrubbers; made their plants Eastern governors preferred scrubbers; made their plants

more competitivemore competitive

Interest group politics: acid rainInterest group politics: acid rain– Solutions and compromise Solutions and compromise

Practical disadvantages Practical disadvantages – Failed to allow for plants that burn low-sulfur coal; Failed to allow for plants that burn low-sulfur coal;

why spend money on scrubbers? why spend money on scrubbers? – Scrubbers didn't work well Scrubbers didn't work well – Failed to address problem of existing plantsFailed to address problem of existing plants

Stalemate for thirteen years Stalemate for thirteen years Two-step regulation proposed by Bush Two-step regulation proposed by Bush

– Before 1995: some plants could choose their Before 1995: some plants could choose their approach; fixed reduction but plants decide how to approach; fixed reduction but plants decide how to do do

– After 1995: sharper reductions for many more plants, After 1995: sharper reductions for many more plants, requiring some use of scrubbers requiring some use of scrubbers

– Sulfur dioxide allowances could be bought and sold Sulfur dioxide allowances could be bought and sold – Financial compensation for coal miners who lose jobsFinancial compensation for coal miners who lose jobs

Became part of Clean Air Act of 1990Became part of Clean Air Act of 1990

Client politics: agricultural Client politics: agricultural pesticidespesticides

– Issue: control of use and runoff of pesticides; farmers have Issue: control of use and runoff of pesticides; farmers have mostly resisted policy entrepreneurs, with DDT an exception mostly resisted policy entrepreneurs, with DDT an exception

– EPA efforts to evaluate safety of all pesticides EPA efforts to evaluate safety of all pesticides Given mandate by Congress in 1972 Given mandate by Congress in 1972 Program has not succeeded Program has not succeeded

– Too many pesticides to evaluateToo many pesticides to evaluate(1). Many have only long-term effects needing extended (1). Many have only long-term effects needing extended studystudy(2). Expensive and time-consuming to evaluate (2). Expensive and time-consuming to evaluate

– Benefits of pesticide may outweigh harmBenefits of pesticide may outweigh harmPolitical complications Political complications

– Farmers are well-represented in Congress Farmers are well-represented in Congress – Subsidies encourage overproduction, which encourages Subsidies encourage overproduction, which encourages

overuse of pesticides overuse of pesticides – Damage is hard to see and dramatizeDamage is hard to see and dramatize

The EPA budget is small The EPA budget is small Few pesticides have been removed from the market; only those Few pesticides have been removed from the market; only those receiving heavy media coverage such as DDT in 1972 receiving heavy media coverage such as DDT in 1972 Client politics has won outClient politics has won out

THEME C - ENVIRONMENTAL POLICY WITHOUT PUBLIC INTEREST

THE ENVIRONMENTAL UNCERTAINTIES

1. What is the Problem?2. What Are Our Goals?3. How Do We Achieve Our Goals.?

OffsetsOffsetsAn environmental rule that a company in An environmental rule that a company in an area with polluted air can offset its own an area with polluted air can offset its own pollution by reducing pollution from pollution by reducing pollution from another source in the area. For instance, another source in the area. For instance, an older company that can't afford to pay an older company that can't afford to pay for new anti-pollution technologies may for new anti-pollution technologies may buy pollution credits from a newer buy pollution credits from a newer company that has reduced its source of company that has reduced its source of pollution below the levels required by law. pollution below the levels required by law.

Bubble standardBubble standard

The total amount of air pollution that The total amount of air pollution that can come from a given factory. A can come from a given factory. A company is free to decide which company is free to decide which specific sources within that factory specific sources within that factory must be reduced and how to meet must be reduced and how to meet the bubble standard.the bubble standard.

Pollution Allowances (or banks)Pollution Allowances (or banks)

If a company reduces its polluting If a company reduces its polluting emissions by more than the law emissions by more than the law requires, it can either use this excess requires, it can either use this excess to cover a future plant expansion or to cover a future plant expansion or sell it to another company.sell it to another company.

Command-and-control strategyCommand-and-control strategy

A strategy to improve air and water A strategy to improve air and water quality, involving the setting of quality, involving the setting of detailed pollution standards and detailed pollution standards and rules.rules.

Why is it so controversial?

1. Every policy creates winners and losers.2. Many environmental issues are enmeshed in scientific uncertainty.3. Much environmental policy takes the form of entrepreneur politics - mobilizing decisions with strong, often emotional appeals in order to overcome the political advantages of client groups that oppose a change.

THEME D - THE FUTURE ENVIRONMENT - THE RESULTS

Evidence indicates that many current environmental problems are intensifying while new problems are continually emerging. Science has been unable to develop workable solutions to most forms of pollution. Such uncertainty precludes the formulation of a coherent public policy. As a result, this is an area where politics will necessarily lag behind technology. Science must define a direction.

The results: the environment has The results: the environment has improved since 1970 in some improved since 1970 in some

aspects aspects

– Less air pollution Less air pollution – Maybe less water pollution but harder Maybe less water pollution but harder

to judge to judge – Hazardous wastes remain a problemHazardous wastes remain a problem

IMPORTANT WEB SITES

www.worldwatch.org

www.epa.gov

SELF TEST