Chap21

11
Chapter 21Chapter 21
EnvironmentalEnvironmental
PolicyPolicy

22Copyright © 2013 CengageCopyright © 2013 Cengage
 WHO GOVERNS?WHO GOVERNS?
1.1. Why have environmental issues becomeWhy have environmental issues become
so important in American politics andso important in American politics and
policymaking?policymaking?
2.2. Does the public get the environmentalDoes the public get the environmental
laws it wants?laws it wants?
 TO WHAT ENDS?TO WHAT ENDS?
1.1. If we wish to have cleaner air and water,If we wish to have cleaner air and water,
how far should we go in making themhow far should we go in making them
cleaner when the cost of each additionalcleaner when the cost of each additional
gain goes up?gain goes up?
2.2. What is the best way for the governmentWhat is the best way for the government
to achieve an environmental goal: byto achieve an environmental goal: by
issuing orders or offering incentives?issuing orders or offering incentives?

Derick E. Hingle/Bloomberg via Getty Images

44
The American ContextThe American Context
 Entrepreneurial PoliticsEntrepreneurial Politics
• Global warmingGlobal warming
The fight over climate change pits people who use
coal with those who oppose burning it.
Source: Robert Nickelsberg/Getty Images
A rider drives the new Chevrolet Volt that, like
the Toyota Prius, combines electric and gasoline
power. The Volt costs over $42,000, but there is a
government subsidy that goes to purchasers.
Scott Olson/Getty Images News/Getty Images
Copyright © 2013 Cengage

55
Entrepreneurial PoliticsEntrepreneurial Politics
 Global Warming QuestionsGlobal Warming Questions
• How much do greenhouse gases causeHow much do greenhouse gases cause
the earth’s temperature to rise?the earth’s temperature to rise?
• What would it cost in lost productivityWhat would it cost in lost productivity
and income to reduce greenhouseand income to reduce greenhouse
gases?gases?
• How large would be the gains toHow large would be the gains to
humankind and when would they occur?humankind and when would they occur?
Copyright © 2013 CengageCopyright © 2013 Cengage

66
M E M O R A N D U MM E M O R A N D U M
To:To: Senator Diane GraySenator Diane Gray
From:From: Keith Mays, legislative assistantKeith Mays, legislative assistant
Until recently, you could get a tax credit if youUntil recently, you could get a tax credit if you
bought a hybrid car. Now that the credit hasbought a hybrid car. Now that the credit has
expired, Congress needs to decide if it willexpired, Congress needs to decide if it will
continue supporting the hybrid car market tocontinue supporting the hybrid car market to
promote clean energy.promote clean energy.
WHAT WOULD YOU DO?WHAT WOULD YOU DO?

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Arguments for incentives:Arguments for incentives:
1. We need to reduce gasoline consumption and our1. We need to reduce gasoline consumption and our
dependence on foreign oil.dependence on foreign oil.
2. Hybrid cars consume much less gasoline.2. Hybrid cars consume much less gasoline.
3. A tax break to buyers of hybrid vehicles that rely3. A tax break to buyers of hybrid vehicles that rely
on both electric and gasoline engines will provideon both electric and gasoline engines will provide
a stable market that will encourage sales.a stable market that will encourage sales.

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Arguments against incentives:Arguments against incentives:
1. We can more easily cut fuel consumption by1. We can more easily cut fuel consumption by
raising taxes on gasoline.raising taxes on gasoline.
2. Many hybrids get worse gas mileage than several2. Many hybrids get worse gas mileage than several
conventional cars.conventional cars.
3. The past tax breaks were essentially a support3. The past tax breaks were essentially a support
for domestic car builders who were being beatenfor domestic car builders who were being beaten
in the market by Japanese producers.in the market by Japanese producers.

99
Your decision:Your decision:
Support?Support?
Oppose?Oppose?

1212
Entrepreneurial PoliticsEntrepreneurial Politics
 The Endangered Species Act (ESA)The Endangered Species Act (ESA)
• Provisions of the lawProvisions of the law
• Lists 600 species of plants and animalsLists 600 species of plants and animals
• Jointly administered by:Jointly administered by:
 Fish and Wildlife ServiceFish and Wildlife Service
 National Oceanic and AtmosphericNational Oceanic and Atmospheric
AdministrationAdministration
• Construction activity in areas withConstruction activity in areas with
endangered species must comply withendangered species must comply with
federal regulationsfederal regulationsCopyright © 2013 CengageCopyright © 2013 Cengage

1313
Majoritarian PoliticsMajoritarian Politics
 Pollution From AutomobilesPollution From Automobiles
• The Clean Air Act of 1970The Clean Air Act of 1970
 Restricted the amounts of pollutants allowedRestricted the amounts of pollutants allowed
from automobile tailpipesfrom automobile tailpipes
 Required states to develop land use andRequired states to develop land use and
transportation rules to help reach air qualitytransportation rules to help reach air quality
standards.standards.
• OppositionOpposition to the lawto the law

1515
 If the Public Believes the Costs are LowIf the Public Believes the Costs are Low
• Example: The National EnvironmentalExample: The National Environmental
Policy ActPolicy Act
 Environment Impact StatementEnvironment Impact Statement
 Effects on PlanningEffects on Planning

1616
 If the Public Believes the Costs areIf the Public Believes the Costs are
HighHigh
• Example: Raising Gasoline TaxesExample: Raising Gasoline Taxes
 The BenefitsThe Benefits
 The OppositionThe Opposition
 Promising Concrete BenefitsPromising Concrete Benefits Now!Now!

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Interest Group PoliticsInterest Group Politics
 Acid RainAcid Rain
• Residents of Canada and New EnglandResidents of Canada and New England
vs.vs.
Midwestern businesses, labor unions andMidwestern businesses, labor unions and
politicianspoliticians
• Effect of the 1977 LawEffect of the 1977 Law
• Clean Air Act of 1990Clean Air Act of 1990

Source: Gallup Poll and Roper Center.

1919
 Client PoliticsClient Politics
• Agricultural pesticidesAgricultural pesticides
Environmentalists have usedEnvironmentalists have used
the protection of endangeredthe protection of endangered
species, such as the spottedspecies, such as the spotted
owl, as a way of reducingowl, as a way of reducing
timber harvests.timber harvests.
Source: William Campbell/ CorbisSource: William Campbell/ Corbis
Pesticides help growPesticides help grow
better crops,better crops,
but some worry theybut some worry they
may harm themay harm the
Environment.Environment.
Source: Jack Clark/ The ImageSource: Jack Clark/ The Image
WorksWorks

2020
 What is the Problem?What is the Problem?
 What Are the Costs and Benefits?What Are the Costs and Benefits?
 What Are Our Goals?What Are Our Goals?
 How Do We Achieve Our Goals?How Do We Achieve Our Goals?
 Cap and TradeCap and Trade
The Environmental UncertaintiesThe Environmental Uncertainties

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