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The costs of environmental protection

Author(s)
Schmalensee, Richard
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Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research.
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Abstract
Recently, some have argued that tougher environmental policies can create jobs, stimulate innovation, and enhance competitiveness. On this view, economic side effects make environmental protection a sort of green free lunch. This essay provides an overview of the level and industrial incidence of environmental protection costs in the U.S. and shows why attempts to transmute these substantial costs into benefits are invalid. Environmental policies shift patterns of employment and R&D, but there is no reason at all to think that they create jobs or enhance economy-wide innovation on balance except, perhaps, in the very short run.
Date issued
1993
URI
http://hdl.handle.net/1721.1/50210
Publisher
MIT Center for Energy and Environmental Policy Research
Other identifiers
93015
Series/Report no.
MIT-CEEPR (Series) ; 93-015WP.

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