What Conclusions Can We Draw?

So, conventional economics shows that environmental regulation does not cause the widespread negative economic effects that are so often alleged. Does this mean that its critics are always wrong? Not at all. These myths arise, no doubt, because there are specific rules that cause some of the hardships that eventually get attributed to all environmental regulations in the public mind. Identifying and modifying these problem areas is a worthy objective. Economics does not conclude that no adjustments are necessary as long as the total costs and benefits of all environmental regulations combined are in reasonable balance. Instead, economists advise examining the marginal costs and benefits of individual regulations in order to continue to increase their net benefits. All environmental professionals have an interest in increasing the efficiency, and thus the effectiveness, of regulation.

There is indeed room for improvement in environmental protection, just as in any large-scale program. But in the end, while acknowledging that environmental regulation may not be perfect, it certainly is not the economic monster some would have us believe.

For answers to the previous questions:

What Conclusions Can We Draw?

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