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7 Environmental Policy: Decision Making and Problem Solving Chapter Objectives This chapter will help students: Describe environmental policy and assess its societal context Identify the institutions important to U.S. environmental policy and recognize major U.S. environmental laws Categorize the different approaches to environmental policy Delineate the steps of the environmental policy process and evaluate its effectiveness Discuss the role of science in the policy process List the institutions involved with international environmental policy and describe how nations handle transboundary issues Lecture Outline I. Central Case: San Diego and Tijuana: Sewage Pollution Problems and Policy Solutions A. In 2007, San Diego officials closed public beaches 27 times, issued 668 days’ worth of health advisories, and kept one area off-limits to swimming the entire year. Of these beach closures, 76% were due to pollution from the Tijuana River. A river’s watershed consists of all the land from which water drains into the river. The Tijuana River’s watershed covers 4,500km2 (1,750 mi2) and is home to 2 million people of two nations, making this a transboundary issue. 100 Copyright © 2011 Pearson Education, Inc B. This problem also occurred across the border in the Mexican city of Tijuana, as raw sewage leaking from old sewer systems overflowed into streets, beaches, and the Tijuana River, directly affecting people’s day-to-day lives. C. The rise of U.S.-owned factories, or maquiladoras, on the Mexican side of the border has contributed to the river’s pollution, both through direct disposal of industrial waste and by attracting thousands of new workers to the already crowded region. D. As impacts have intensified, many people in the San Diego and Tijuana areas have worked with policymakers to address this problem. II. Environmental Policy: An Overview 1. A policy is a formal set of general plans and principles intended to address problems and guide decision making. 2. Public policy is made by governments, and consists of laws, regulations, orders, incentives, and practices intended to advance societal welfare. 3. Environmental policy pertains to human interactions with the environment. 4. Forging effective policy requires input from science, ethics, and economics. A. Environmental policy addresses issues of equity and resource use. 1. Government interacts with individual citizens, organizations, and the private sector in a variety of ways to formulate policy. 2. Environmental policy aims to protect environmental quality and the natural resources people use, and to promote equity in people’s use of resources. 3. The tragedy of the commons, as explained by Garrett Hardin, is when an unregulated resource held in common eventually becomes overused and degraded. 4. Although public oversight through government can alleviate the tragedy of the commons, this dilemma can also be addressed in other ways, including a cooperative approach and privatization. 5. If a community agrees to reduce use, or pollution, in a common resource while one or two groups or individuals do not participate, they are free riders on the efforts of others; this can collapse the system. 6. External costs are harmful impacts borne by people not involved in the market transactions that created them. 7. Some policies, such as the polluter pays principle, specify that the party responsible for pollution should also be held responsible for covering the costs of its impacts. This helps avoid a tragedy of the commons. 101 Copyright © 2011 Pearson Education, Inc B. Many factors can hinder environmental policy. 1. Some people see government policies that regulate the environment as restrictive, inconvenient and an economic loss in their implementation. 2. Another reason people sometimes do not see a need for environmental policy stems from the nature of most environmental problems, which often develop gradually. III. U.S. Environmental Law and Policy A. Federal policy arises from the three branches of government. 1. Legislation is created by Congress, which consists of the Senate and the House of Representatives. 2. Legislation is enacted (approved) or vetoed (rejected) by the president, who may also issue executive orders, specific legal instructions for government agencies. a. Regulations are specific rules or requirements intended to help achieve the objectives of the more broadly written statutory law. 3. The judiciary, consisting of the Supreme Court and various lower courts, is charged with interpreting legislation. a. Courts interpret laws because over time social norms, societal conditions, and technologies change. b. Decisions made by the courts are known as case law. c. Previous rulings then serve as precedents for new cases. B. State and local governments also make environmental policy. 1. States, counties, and municipalities all generate environmental policy of their own, and interact to address environmental problems. 2. States with higher population densities often have more strict environmental laws and tend toward more regulation because citizens observe the damage from unregulated activities. 3. State laws cannot violate principles of the U.S. Constitution, and if state and federal laws conflict, federal laws take precedence. C. Some constitutional amendments bear on environmental law. 1. One of these is the clause from the Fourteenth Amendment prohibiting states from denying ―equal protection of its laws‖ to any person. 2. The Fifth Amendment ensures, in part, that private property shall not ―be taken for public use without just compensation.‖ a. A regulatory taking occurs when the government, by means of a law or regulation, deprives a property owner of some or all economic uses of that property. 102 Copyright © 2011 Pearson Education, Inc D. Early U.S. environmental policy promoted development. 1. The early environmental laws were intended to promote settlement and the extraction and use of the continent’s abundant natural resources. a. Among these early laws were the General Land Ordinances of 1785 and 1787. It gave the federal government the right to manage unsettled lands, and it created a grid system for surveying them and readying them for private ownership. b. This law wholly displaced the Native Americans who were inhabiting these lands. c. All of these policies encouraged settlers, entrepreneurs, and land speculators to move west. E. The second wave of U.S. environmental policy encouraged conservation. 1. In the late 1800s, as the continent became more populated and its resources were increasingly exploited, public perception and government policy toward natural resources began to shift. 2. During this time, the government created national parks, wildlife refuges, and the forest system. F. The third wave of U.S. environmental policy responded to pollution and public outcry. 1. The publication of Rachel Carson’s Silent Spring awakened the American public to the negative impacts of pesticides and industrial chemicals. 2. The burning of the Cuyahoga River moved the public to prompt Congress to do more to protect the environment. 3. Earth Day, first celebrated on April 22, 1970, continues to be supported by millions of people worldwide. G. NEPA gives citizens input into environmental policy decisions. 1. The National Environmental Policy Act (NEPA) was signed in 1970 and requires that an environmental impact statement (EIS) be prepared for any major federal action. 2. The EIS process uses a cost-benefit approach typical of neoclassical economics, and generally does not halt development projects, while providing incentives to lessen the environmental damage resulting from a development or activity. H. Creation of the EPA marked a shift in environmental policy. 1. The Environmental Protection Agency (EPA) is charged with conducting and evaluating research, monitoring environmental quality, setting and enforcing standards, assisting the states in meeting standards and goals, and educating the public. I. Other prominent laws followed. 103 Copyright © 2011 Pearson Education, Inc 1. This included the Federal Water Pollution Control Acts (1965 and 1972) and Clean Water Act (1977). 2. In the 1980s, Congress strengthened, broadened, and elaborated on the major laws of the 1970s. For example, major amendments were made to the Clean Water Act in 1987 and to the Clean Air Act in 1990. J. Many people reacted against regulation. 1. From 1994 through 2006, the Republican-controlled Congress, and the White House under George W. Bush, sought to weaken or eliminate hard won environmental protection measures. 2. In a departure from the former environmental advocacy stance that relied on technological fixes, consultants argued that arguments based on people’s core values were more effective in gaining public support for environmental protection. 3. New perspectives helped contribute to the election of Barack Obama as president in 2008. K. Today’s environmental policy focuses on sustainability and climate change. 1. With Obama’s election and enhanced Democratic majorities in Congress came widespread optimism that the United States might reestablish its international leadership in environmental policy. 2. We may now be embarking on a fourth wave of environmental policy, one focused on sustainability and sustainable development. IV. Approaches to Environmental Policy A. Conflicts can be addressed in court. 1. Prior to the legislative push of recent decades, most environmental policy questions in the United States were addressed with lawsuits in the courts through tort law, which is law that deals with harm caused to one entity by another. B. Command-and-control policy has improved our lives. 1. Most environmental laws of recent decades, and most regulations enforced by agencies today, use a command-and-control approach where a regulating agency prohibits certain actions, or sets rules, standards, or limits, and threatens punishment for those who violate these terms. 2. The command-and-control policy has largely been effective. 3. Despite these successes, many people have grown disenchanted with the top-down, sometimes heavy-handed nature of the command-and-control approach. C. Economic policy tools can help achieve environmental goals. 104 Copyright © 2011 Pearson Education, Inc 1. Political scientists, economists, and policymakers today are exploring alternative policy approaches to channel the innovation and economic efficiency of the market in directions that benefit the public. D. Green taxes discourage undesirable activities. 1. Green taxes, or taxes on environmentally harmful activities and products, discourage undesirable activities. 2. Today there is debate worldwide about whether ―carbon taxes‖—taxing gasoline, coal-based electricity, and fossil-fuel-intensive products according to the carbon emissions they produce—should be instituted to fight global climate change. E. Subsidies promote certain activities. 1. Subsidies are government giveaways of money or publicly owned resources. They are intended to encourage a particular industry or activity. a. A tax break is a common form of subsidy. b. Plenty of environmentally harmful subsidies remain. F. We can harness market dynamics to promote sustainability. 1. We may also pursue policy goals by establishing financial incentives and then letting marketplace dynamics run their course. G. Permit trading can save money and produce results. 1. Permit trading is where the government creates a market in permits for an environmentally harmful activity, and then companies and utilities are allowed to buy, sell, or trade rights to conduct the activity. a. For instance, to decrease emissions of air pollutants, a government might grant emissions permits and set up an emissions trading system. 2. In a cap-and-trade emissions trading system, the government first determines the overall amount of pollution it will accept (i.e., it caps the amount, at a level below what it would be in the absence of the program), and then issues permits that allow each entity to emit a certain fraction of that amount. a. Polluters may buy, sell, and trade these permits with other polluters. b. Although cap-and-trade programs can reduce pollution overall, they do allow hotspots of pollution to occur around plants that buy permits to pollute more. H. Market incentives also operate at the local level. 1. At all levels, from the local to the international, market-based incentives that are well planned and implemented can reduce environmental impact 105 Copyright © 2011 Pearson Education, Inc while minimizing overall costs to industry, easing concerns about the intrusiveness of government regulation. I. The public and private sectors can work as partners. 1. In a public-private partnership, a for-profit entity takes charge of performing the work, while operating within confines agreed upon with a public entity that acts as an overseer. V. Science and the Environmental Policy Process A. Environmental policy results from a step-wise process. 1. Identifying the problem is the first step. 2. Pinpointing causes of the problem is the second step in the policy process. 3. The third step is envisioning a solution. 4. Getting organized is the fourth step. 5. Cultivating access and influence is the fifth step. a. Lobbying is spending time or money trying to influence an elected official’s decision. b. Making campaign contributions is another way to get voices heard. c. The movement of powerful officials between the private sector and governmental agencies helps gain political influence and is called the revolving door. 6. Shepherding a solution into law is the sixth step in the policy process 7. The final steps are to implement, access, and interpret policy. B. Science plays a role in policy formulation. 1. Economic interests, ethical values, and political ideology all influence the policy process; yet effective environmental policy is generally also informed by scientific research. 2. The more information a policymaker can glean from science, the better policy he or she will be able to create. C. Science can be ―politicized.‖ 1. Sometimes policymakers choose to ignore science and instead allow political ideology alone to determine policy. 2. In 2004, the nonpartisan Union of Concerned Scientists released a statement titled, ―Restoring Scientific Integrity in Policy Making,‖ which faulted the Bush Administration for manipulating scientific information for political ends: censoring, suppressing, and editing reports from government scientists; placing people who are unqualified or who have 106 Copyright © 2011 Pearson Education, Inc clear conflicts of interest in positions of power; ignoring scientific advice; and misleading the public by misrepresenting scientific knowledge. VI. International Environmental Policy A. International law includes conventional and customary law. 1. Conventional law is international law arising from conventions, or treaties, into which nations enter. 2. Other international law arises from long-standing practices, or customs, and is known as customary law. U.S. law, in contrast, rises from the Constitution and the Bill of Rights. B. Cross-border cooperation helps address environmental problems. 1. Often, nations make progress on international issues not through legislation or treaties, but through creative multilateral agreements hammered out after a lot of hard work and diplomacy. C. Several organizations shape international environmental policy. 1. The United Nations (UN) sponsors environmental agencies, including the United Nations Environmental Programme (UNEP). Created in 1972, UNEP helps nations solve environmental problems with sustainability as the goal. 2. The World Bank holds the purse strings for development. Funding environmentally destructive development programs is one of the chief criticisms of the World Bank. 3. The European Union (EU) is active in environmental affairs. 4. The World Trade Organization (WTO) has recently attained surprising power. Among these new powers is the ability to circumvent and even overturn national environmental protection laws of sovereign nations if those statutes are barriers to trade and profit-making. 5. Nongovernmental organizations (NGOs) also exert influence. a. A number of NGOs are international in scope and influence international environmental policy. b. The World Wide Fund for Nature, Conservation International, Greenpeace, Population Connection, and others attempt to shape policy through research, education, lobbying, and protest. D. International institutions wield influence in a globalizing world. VII. Conclusion A. Environmental policy is a problem-solving tool that requires science, ethics, economics, and the political process. 107 Copyright © 2011 Pearson Education, Inc B. The United States has historically often led the way with environmental policy, but environmental issues often span political boundaries and require international cooperation. Key Terms cap and trade command-and-control conventional law conventions customary law emissions trading environmental impact statement (EIS) environmental policy Environmental Protection Agency (EPA) European Union (EU) free rider green tax legislation lobbying National Environmental Policy Act (NEPA) North American Free Trade Agreement (NAFTA) permit trading policy polluter pays principle public-private partnership public policy regulation regulatory taking revolving door subsidy tort law treaties United Nations (UN) watershed World Bank World Trade Organization (WTO) Teaching Tips 1. The chapter briefly describes three major impacts of raw sewage on humans and the environment: pathogens that cause illness, lowered dissolved oxygen levels, and economic impacts caused by reduced tourism and recreation. Discuss these impacts in more detail in class and ask the students to rank those impacts in order of importance to them. Is human health most important? The economy? The environment? 2. Assign students to read Garrett Hardin’s paper, ―The Tragedy of the Commons,‖ published in Science 162:1243–1248. The article can be found on the Science magazine website at www.sciencemag.org. Ask them to answer the following questions: a. Why does the ―economic man‖ behave differently in a commons than on private property? b. What are the implications of this behavior on public lands? 3. Ask students to conduct Internet research for updates on San Diego’s sewage problem. Is the Tijuana River Valley Estuary and Beach Sewage Cleanup Act being implemented? What has been done so far? Has it been successful? 108 Copyright © 2011 Pearson Education, Inc 4. Discuss some of the environmental laws that were passed in the late 1960s and early 1970s to emphasize that the ―third wave of U.S. environmental policy responded largely to pollution problems.‖ The Clean Water Act; the Clean Air Act; the Federal Insecticide, Fungicide, and Rodenticide Act; and the Wilderness Act are just a few. Summaries of the major environmental statutes are available on the U.S. EPA website (www.epa.gov/epahome/laws.htm). 5. Ask students to create a concept map that illustrates the three branches of the federal government and the components of each. Concept maps graphically illustrate relationships among pieces of information. Maps can be drawn by hand or designed using computer software such as Inspiration. For more information about concept mapping, see www.inspiration.com. 6. Monitor the local news, print, broadcast, and Web outlets to learn if there are any local environmental issues that are of concern to a wide range of individuals. Have students research the topic and use the steps outlined in the text for the environmental policy process. The goal of this exercise is to create a flow chart that will culminate with ―shepherding a solution into law,‖ as per the text. Additional Resources Websites 1. Major Environmental Laws, U.S. Environmental Protection Agency (www.epa.gov/epahome/laws.htm) This resource provides full text and summaries of the major environmental laws. 2. NEPA: Project Development Process, U.S. Department of Transportation Federal Highway Administration (http://environment.fhwa.dot.gov/projdev/index.htm) This listing is an overview of NEPA and its impacts on projects planned by the Federal Highway Administration. 3. International Environmental Law and Policy: A Comprehensive Reference Source, Washington College of Law, American University (www.wcl.american.edu/environment/iel/) This site provides a comprehensive list of links to international environmental issues as online support for an environmental law and policy textbook. Audiovisual Materials 1. Motor, 2000, video distributed by Bullfrog Films (www.bullfrogfilms.com/catalog/motor.html) This video is a summary of the controversy surrounding the use of offroad vehicles on public lands. 109 Copyright © 2011 Pearson Education, Inc 2. The God Squad and the Case of the Northern Spotted Owl, 2001, video distributed by Bullfrog Films (www.bullfrogfilms.com/catalog/gsquad.html) In this video, the God Squad investigates the Endangered Species Committee proceedings that selected economic interests over the survival of a species. 3. Borderline Cases: Environmental Matters at the United States–Mexico Border, 1996, video distributed by Bullfrog Films (www.bullfrogfilms.com/catalog/bc.html) This video investigates the environmental impact of factories (maquiladoras) situated on the United States–Mexico border that are run by U.S., Asian, and European multinational corporations. 4. Greenplans, 1995, video produced by John de Graaf and distributed by the Video Project (www.videoproject.com) This program, hosted by CNN’s Jack Hamann, takes viewers to the Netherlands and New Zealand to see how national plans for sustainable development have been developed using a national environmental policy called a Green Plan. 5. Strange Days on Planet Earth, 2005, National Geographic, distributed by the Public Video Store (www.publicvideostore.org) This program examines the cause-and-effect relationship between what we as humans do to Earth and what that does to our environment and ecosystems. Weighing the Issues: Facts to Consider Regulatory Takings Facts to consider: The original intent of the takings clause of the U.S. Constitution was to prevent the acquisition of private land by the government for the public use without fair compensation. The ―taking‖ of land is not prohibited, but the Constitution requires just compensation if land is taken. Over the years, there have been two interpretations by the U.S. Supreme Court of this clause that are critical to how the takings clause is viewed by the U.S. legal system: (1) If an action by the government directly or indirectly eliminates most or all the economic value of land, then the land has been ―taken‖ and compensation is required; and (2) the use of private land cannot injure the neighbors of the landowner or the community at large. Such ―noxious use‖ is an exception to the takings clause, and a taking under the ―nuisance exception‖ does not require compensation. The main decision to be made by the courts is whether governmental action constraining land use is a ―taking,‖ and, if so, whether the owner should be compensated. The U.S. Supreme Court has decided that overregulation of land use is a taking, and owners should be compensated. Overregulation has come to mean that too many local and state laws constrain land use. eliminating the economic value of the land. In terms of environmental policy, court decisions have decreased the power and influence of many of the nation’s most progressive environmental laws, such as the Clean Air and Water Acts and the Endangered Species Act, by granting exceptions to landowners for land development that violates the word and intent of the acts. 110 Copyright © 2011 Pearson Education, Inc A Licence to Pollute? As stated in the chapter, in a cap-and-trade emissions trading system, the government first determines the overall amount of pollution it will accept, and then issues permits to polluters that allow them each to emit a certain fraction of that amount. Polluters may buy, sell, and trade these permits with other polluters. In this regard, a pro is that an overall pollution limit is established. A con is that a cap is not necessarily issued to each individual polluter—the more they are willing to spend, the more that one company can pollute. In a command-and-control approach, a regulating agency prohibits certain actions, or sets rules, standards, or limits, and threatens punishment for those who violate these terms. The pro is that a company cannot pay to pollute more—these companies would be penalized by the rules, standards, limits, etc., just as any other company. The con is that this would be much harder to regulate. Trade Barriers and Environmental Protection Facts to consider: The foundation of this issue lies in the tragedy of the commons and the fact that environmental issues recognize no political boundaries. By allowing Country B to export environmentally hazardous materials to Country A, Country B is spreading a potential environmental risk to Country A. On the one hand, the citizens of Country A will need to absorb the economic, environmental, and health consequences of the material’s use. On the other hand, if Country A is a wealthy industrialized nation, it is better able to properly handle or develop the technologies needed to work with the goods. Allowing the export of Country B’s goods to Country A will boost the economy of Country B and then allow Country A to export the technology back to Country B in an effort to reduce the environmental risk of the goods. However, this system requires that both countries maintain the attitude that sustainability of resources and environment is a priority, as opposed to the priority of maximization of profits. In addition, free-trade agreements and corporate outsourcing of factories from Country A to Country B may aggravate environmental conditions in either or both countries. The Science behind the Stories: Thinking Like a Scientist Comparing Costs and Benefits of Environmental Regulations Observation: Protecting environmental quality benefits the planet greatly, but comes at a cost. Question: Is protecting the environment worth the cost? Hypothesis: The benefit to public good justifies the cost of environmental protection and restoration. Experiment: A study, conducted by the White House Office of Management and Budget (OMB), weighed the economic costs and benefits of 107 federal regulations enacted in the United States from 1992 to 2002, many of which dealt with environmental issues. 111 Copyright © 2011 Pearson Education, Inc Results: The economic benefits of these regulations far exceeded their costs. Moreover, of all the regulations, those dealing with environmental protection were found to be especially cost-effective. Assessing the Environmental Impacts of NAFTA Observation: Treaties not aimed specifically at environmental concerns may still have major environmental consequences. The North American Free Trade Agreement (NAFTA) is one such treaty. Question: Would free trade threaten to undermine protections for workers and the environment? Hypothesis: The feared consequences are not associated with the actions of NAFTA. Results: In response to these fears, two side agreements for labor and environmental concerns were negotiated. The environmental agreement, known as the North American Agreement on Environmental Cooperation, set up a tri-national Commission on Environmental Cooperation (CEC). The CEC has monitored NAFTA’s effects on the environment over the years, testing several hypotheses about the impact NAFTA was predicted to have. The CEC has held four symposia for which dozens of researchers have published over 50 papers analyzing different aspects of the topic. This research suggests that, for the most part, the feared consequences have not occurred, or have not been due to NAFTA. Answers to End-of-Chapter Questions Testing Your Comprehension 1. Justifications for environmental policy include protecting resources and environmental quality and promoting equity and justice among citizens. Specifically, environmental policy aims to deal with three problems: the tragedy of the commons, the free rider predicament, and external costs. External costs are those that result when one party avoids paying costs by making another party pay, either now or in the future. 2. The legislative branch is charged with writing law, the executive branch with administering it, and the judicial branch with interpreting it. Administrative agencies within the executive branch are sometimes considered the “fourth branch” of government. They issue regulations based on the broader written laws, monitor compliance, and enforce these laws and regulations. 3. A regulatory taking refers to an instance in which the government, by means of a law or regulation, deprives an owner of some or all of the economic uses of his or her property. 4. The first wave of environmental policy in the United States dealt mainly with the management of public lands during the period of westward expansion. The second wave dealt with the recognition that our resources were limited and so required legal 112 Copyright © 2011 Pearson Education, Inc protection for their preservation and conservation. The third wave dealt with the pollution problems that became apparent in the mid 20th century. Today, sustainable development (a largely international effort) may comprise a fourth wave. 5. The National Environmental Protection Act of 1970 (NEPA) required that an environmental impact statement (EIS) be prepared for any major federal action. To comply with this requirement in a coordinated way, many of the federal agencies with environmental oversight were consolidated into the new Environmental Protection Agency (EPA). The EPA conducts and evaluates research, monitors environmental quality, sets and enforces standards, assists states in meeting those standards, and educates the public. 6. Prior to the legislative push of recent decades, most environmental policy questions in the United States were addressed in the courts through tort law, which is law that deals with harm caused to one entity by another. Most environmental laws of recent decades, and most regulations enforced by agencies today, use a command-and-control approach in which a regulating agency prohibits certain actions, or sets rules, standards, or limits, and threatens punishment for those who violate these terms. Like regulation and like the tort law approach, economic policy tools aim to “internalize” external costs, taking costs to the public and building them into the prices paid in the marketplace. Each of these three major approaches has strengths and weaknesses, and each is best suited to different conditions. These three approaches may, however, be used together. 7. A subsidy is a government giveaway intended to encourage a particular activity. Similarly, a tax break may be offered as an incentive as well. A green tax is a disincentive on an activity or product that is detrimental to the environment. Marketable emissions permits allow polluters to buy and sell government permission to produce a certain amount of pollution. This allows the government to cap the total emissions from an industry, but still lets industry allocate its emissions in an economically efficient way through the free market. 8. Environmental policy begins with identifying the problem. Once the problem is identified, then, the cause of the problem can be pinpointed. Third, a solution is envisioned. Then, the parties involved get organized, and strive to cultivate access and influence. At this point, the solution can be shepherded into law, and finally, implementation, assessment, and interpretation of the policy can occur. 9. Conventional law arises from conventions or treaties that nations agree to enter into, such as the Kyoto Protocol. International customary law arises from long-standing practices or customs held in common by most cultures. Transboundary environmental problems can be difficult, as long-standing practices and customs in one or more countries can clash with conventions and treaties that the other country or countries adopt. 10. One nation’s stringent environmental laws may prevent the import and sale of environmentally harmful products from other nations, and thereby act as trade barriers. 113 Copyright © 2011 Pearson Education, Inc Calculating Ecological Footprints Name of Congressperson How he/she voted on your bill of interest A representative from the House from your state A senator from your state A member of the Congressional leadership Answers to questions #1-4 will vary depending on the vote choice of the student. 114 Copyright © 2011 Pearson Education, Inc