| Publisher | Organisation for Economic Co-operation and Development | ||
|---|---|---|---|
| Format | 230.0KB PDF, requires Acrobat Rdr 5 | Date added | 26 Jan 2001 |
| Topics | Economic Modeling | ||
| Downloads | 2 | ||
This paper analyses aspects of US environmental policy, including, among others, policy on air and water quality, water supply in certain areas, climate change and greenhouse gas emissions. Particular attention is paid to certain policies in agriculture and road transport, sectors with an important influence on the environment, as well as to the use of cost-benefit analysis (and in some cases specific prohibitions on its use) and the role of the courts in designing and implementing policy. While "command and control" style regulations have produced significant improvements in environmental standards since the 1970s, increasing attention has been paid to the use of economic incentives - permit trading arrangements have been preferred to environmental taxes - and more flexibility in some regulatory policies. These trends towards more cost-effective policies should be extended to such areas as fuel economy, where increased fuel taxes would be more cost-effective than the "CAFE" standards, and water supply, where increased use of pricing and removal of impediments to water trading would improve the efficiency with which water- especially for irrigation - is used. The overall efficiency of policy would benefit from a rationalisation of the treatment and status of cost-benefit analysis in different policy areas.
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