Hardbound. Environmental regulation requires that substantial
productive resources be diverted to efforts to improve
environmental quality. Economic theory says that, all else being
equal, regulation will consequently cause costs to rise with
resulting losses in competitive advantage and a general weakening
of economic performance as measured by indicators such as national
or regional income. Empirical tests of this theory generally fail
to find such consequences, however. This book sets out the reasons
why empirical research and theory are at odds, suggests alternative
formulations of the relationship between environmental regulation
and economic performance, and presents related original research
using Southern California as a case study of economic performance
in the context of increasingly stringent and effective
environmental controls promulgated over more than 30 years.
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