ABSTRACT
This chapter focuses on alternative ways of meeting society's social objectives, notably improving the quality of the environment. Environmental regulation covers a variety of concerns—air pollution, water pollution, pesticides, toxic substances, hazardous wastes, drinking water, ocean dumping, noise emissions, and asbestos in schools. In recent years, "markets" for pollution control have been created to enable companies to seek less costly approaches to meeting environmental standards. During the 1970s, legislation progressively enlarged the role of the federal government in regulating the environment and committing the nation to ambitious goals. Over 99 percent of environmental spending by government is devoted to controlling pollution after it is generated. Practical problems make changes in pollution policy difficult in the United States. Both the regulators and the regulated have an interest in maintaining the current approach. The pollution tax approach appeals to self-interest in order to achieve the public interest.
