Environmental Laws and the Relationship of Risk …...Carson published “Silent Spring” and...

A Review of Environmental Laws and the

Relationship of Risk and Economics

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What does the College Board expect you to know about Environmental Laws/Risk/Economics?

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What will you see on the APES exam?

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Question: WHY do we have Environmental Laws?

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We have Environmental Laws because someone wanted…

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Cleaner Water…

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Cleaner Water… Cleaner Air…

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Cleaner Land…Tuesday, May 24, 16


Cleaner Land… Preservation of biodiversity…Tuesday, May 24, 16

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Are Environmental Laws worth the cost?

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Are they working?

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Are they working?

How do we know?

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What was the driving force for the creation of environmental laws in the United States?

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What was the driving force for the creation of environmental laws in the United States?

To understand that, we need to take a trip back in time…

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In the 1940s and 1950s, chemicals such as DDT began to dominate agriculture and households.

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In the 1940s and 1950s, chemicals such as DDT began to dominate agriculture and households.

Everyone said that DDT was safe and was going to “save the world” from pests…

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It wasn’t until later that we found that DDT could biomagnify and harm wildlife.

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In 1962, Rachel Carson published “Silent Spring” and exposed the environmental dangers of chemicals.

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Other events were changing the way humans think about the planet.

In the 60’s and into the 70’s, the U.S. was embroiled in the Vietnam War.

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Citizens—especially younger ones—began to demand change.

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The assassination of President John F. Kennedy in 1963, Reverend Martin Luther King, Jr. in April of 1968 and Presidential Candidate Robert F. Kennedy in June of 1968 helped spark the “hippie” movement of the late 1960’s.

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Hippies generally were non-trusting of the government and were “eco-friendly”. Their ideas helped shape environmental changes of the 1970’s

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The first Earth Day in 1970 brought millions together for a common cause: Saving the Planet.

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http://en.wikipedia.org/wiki/File:Ecology_symbol.png






























In 1970, the Environmental Protection Agency (EPA) was formed. In quick succession, major environmental laws such as the Clean Air Act, Clean Water Act, Endangered Species Act and National Environmental Policy Act were passed. The 1970’s became known as the “Environmental Decade”.

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Evolution of the size of a law…

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Evolution of the size of a law…

Question: Why are more pages needed today than in 1963???

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Laws Administered by the EPA• A number of laws serve as EPA's foundation for

protecting the environment and public health. However, most laws do not have enough detail to be put into practice right away. EPA is called a regulatory agency because Congress authorizes it to write regulations that explain the critical details necessary to implement environmental laws. In addition, a number of Presidential Executive Orders (EOs) play a central role in our activities.

• The major laws and EOs can be roughly divided into two categories:

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The next several slides will touch on the different types of

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Many Environmental Laws are based on the concept of “command and control”:

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Liability laws spell out who is responsible when the environment is damaged…

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Disclosure laws force violators to report releases of substances into the environment…

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These type of laws address potential ecosystems impacts…

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The concepts of permits, cap and trade, offsets, etc. are ways in which the EPA tries to “control” the amount of pollution released into the environment…

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Laws of this nature compel federal agencies and other government entities to plan ahead before disturbing the environment…

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Cross-compliance laws gives economic incentives to or takes economic incentives away from entities who potentially help or potentially damage the environment…

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Preservation laws preserve important parts of the environment for future generations…

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Laws involving wildlife speak for those who can’t speak for themselves…

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Conservation laws allow use of the environment but strive to avoid OVER-use…

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The following laws and EOs help to protect human health and the environment. EPA is charged with administering all or a part of each.

• Atomic Energy Act (AEA)

• Clean Air Act (CAA)

• Clean Water Act (CWA) (original title: Federal Water Pollution Control Amendments of 1972)

• Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, or Superfund)

• Emergency Planning and Community Right-to-Know Act (EPCRA)

• Endangered Species Act (ESA)

• Energy Policy Act

• EO 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations

• EO 13045: Protection of Children From Environmental Health Risks and Safety Risks

• EO 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use

• Federal Food, Drug, and Cosmetic Act (FFDCA)

• Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)

• Federal Water Pollution Control Amendments - See Clean Water Act

• Marine Protection, Research, and Sanctuaries Act (MPRSA, also known as the Ocean Dumping Act)

• National Environmental Policy Act (NEPA)

• National Technology Transfer and Advancement Act (NTTAA)

• Nuclear Waste Policy Act (NWPA)

• Occupational Safety and Health (OSHA)

• Ocean Dumping Act - See Marine Protection, Research, and Sanctuaries Act

• Oil Pollution Act (OPA)

• Pollution Prevention Act (PPA)

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http://www.epa.gov/lawsregs/laws/aea.html

http://www.epa.gov/lawsregs/laws/aea.html

http://www.epa.gov/lawsregs/laws/caa.html

http://www.epa.gov/lawsregs/laws/caa.html

http://www.epa.gov/lawsregs/laws/cwa.html


http://www.epa.gov/lawsregs/laws/cercla.html

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http://www.epa.gov/lawsregs/laws/epcra.html

http://www.epa.gov/lawsregs/laws/epcra.html

http://www.epa.gov/lawsregs/laws/esa.html

http://www.epa.gov/lawsregs/laws/esa.html

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http://www.epa.gov/lawsregs/laws/ffdca.html

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http://www.epa.gov/lawsregs/laws/mprsa.html


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http://www.epa.gov/lawsregs/laws/opa.html

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Regulation development is not a straight-forward process. Our job is to produce quality regulations that are scientifically sound, cost-effective, fair, and successful in achieving environmental goals. We routinely take diverse and often complex issues into account before making final decisions. Some of the most influential factors in our decision-making are:

• Using Sound Science EPA works to incorporate the most current and credible scientific information

available into our regulation development process. Information from EPA's own research facilities is combined with literature reviews to arrive at the best possible conclusions.

• Following Regulatory Process Requirements Several laws and executive orders (E.O.s) direct EPA to consider issues of

concern to the President, Congress, and the American public.

• Providing Flexibility By pursuing innovative approaches and insisting on strong accountability for

Important Considerations that Guide Decision-Making by the EPA

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http://www.epa.gov/lawsregs/brochure/science.html




http://www.epa.gov/ORD/

http://www.epa.gov/ORD/

http://www.epa.gov/lawsregs/brochure/lawseos.html




http://www.epa.gov/lawsregs/brochure/flexibility.html




EPA Enforcement of Environmental Laws

• Civil EnforcementServes a number of important goals including, returning violators to compliance and deterring misconduct in others, eliminating or preventing environmental harm, and preserving a level playing field for responsible companies that abide by the laws.Air | Water | Multimedia | Waste | Toxics |

• Cleanup Enforcement Deals with sites where there's been a migration or a release, or a threat of release, of hazardous substances into the environment. Superfund | RCRA Cleanup | Brownfields & Land Revitalization |

• Criminal Enforcement Used against the most serious environmental violations as well as those which involve egregious negligence or conduct

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http://www.epa.gov/compliance/civil/index.html

http://www.epa.gov/compliance/civil/index.html

http://www.epa.gov/compliance/civil/caa/index.html

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http://www.epa.gov/compliance/civil/tsca/index.html

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http://www.epa.gov/compliance/cleanup/superfund/index.html

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http://www.epa.gov/compliance/cleanup/revitalization/index.html

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Mitigation vs. Remediation Mitigation means to compensate, usually in the context of an environmental permit that allows somebody to do something that harms the environment. Appropriate Mitigation is supposed to fully compensate for the loss of ecological values destroyed or reduced as a result of the approved activity. Mitigation is only considered after the applicant has done everything possible to avoid harming the env. and if that is not possible, then s/he and minimized the harm as much as possible In the case of wetlands disturbance. this means minimizing the area of disturbance and maintaining the hydrological connections to the maximum extent possible. In contrast,Remediation involves restoration of a damaged area to a healthy or safe condition. e.g. removing all oil contaminated soils from under and around a leaking storage tank, as well as removal of the tank. the final result might be a parking lot or a lawn, or a forest, depending on previous conditions. Remediation usually occurs in the context someone or something having harmed the environment either unintentionally (e.g. an accident) or prior to there being any rules that prevented someone from doing what we now know causes harm (e.g. dumping their "waste" in a stream or wetlands, whatever was the easiest, least expensive manner.).

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Who can report a violation of Environmental Law?

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Who can report a violation of Environmental Law?Answer: ANYONE! Just go to www.epa.gov

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http://www.epa.gov/tips/

http://www.epa.gov/tips/

What are some ways that companies are affected by or deal with Environmental Laws?

• Pollution tax—gives incentive to not pollute. The more you pollute, the more you pay.

• Permits—allow only a specific amount of pollution to be produced. These can be traded among companies. If Company A doesn’t pollute much, it can sell it’s permits to Company B. How is this fair?

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EPA achieves cleaner air, purer water and better-protected land in many different ways. Compliance with the nation's environmental laws is the goal, but enforcement is a vital part of encouraging governments, companies and others who are regulated to meet their environmental obligations. Enforcement deters those who might otherwise profit from violating the law, and levels the playing field with environmentally compliant companies.

EPA's civil, cleanup, and criminal enforcement programs work with the Department of Justice, state, and Tribal governments to take legal actions in both federal and state courts that bring polluters into compliance with federal environmental laws. The Agency emphasizes those actions that reduce the most significant risks to human health or the environment, and consults extensively with states and other stakeholders in determining risk-based priorities.

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Actual vs. Perceived Risk

Risk = the possibility of suffering harm or loss

Actual Risk = the calculated risk based on it’s severity and probability

Perceived Risk = what the public thinks the level of risk is

Many times, the actual risk is different from the perceived risk and vice versa.

Example: the risk of dying in an airplane accident is far less than dying in a car wreck but many more people are more afraid of flying than driving.

The perception of risk is driven by experience, the media and friends

The concept of risk plays an important role in the evolution of environmental policy and law-making.

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Question: Should we levy a “pollution tax” on cigarettes and other tobacco products?

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The Role of Economics in Establishing Environmental Policy

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• Some things are too expensive to fix

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• Some things are too expensive to fix• Some things are too risky to ignore

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• Some things are too expensive to fix• Some things are too risky to ignore• How do we know which ones to address?

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Example #1: Treating all the water in the ocean to remove pollutants is clearly too expensive. What should be done to address this problem?

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Example #1: Treating all the water in the ocean to remove pollutants is clearly too expensive. What should be done to address this problem?

Example #2: Allowing companies to indiscriminately dump waste chemicals into lakes, rivers, streams and the oceans is too risky. What should be (or has been) done to address this problem?

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Controlling pollution costs $$$$$$:

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• Pollution control costs represent direct monetary expenditures by society for the purpose of procuring resources to improve environmental quality or to control pollution. Examples are:

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• Pollution control costs represent direct monetary expenditures by society for the purpose of procuring resources to improve environmental quality or to control pollution. Examples are:– Sewage treatment facilities, smoke stacks,

soundproof walls and catalytic converters on passengers cars.

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Cost of Pollution Control:

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• In general, we would expect the marginal pollution control cost to increase with increased environmental quality or cleanup activities.

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• In general, we would expect the marginal pollution control cost to increase with increased environmental quality or cleanup activities.

• This is because incrementally higher levels of environmental quality require investments in technologies that are increasingly costly.

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Pollution damage also costs $$$:

• Pollution damage costs (sometimes called ‘external costs’ or ‘externalities’) represent the total monetary value of all the various damages resulting from the discharge of untreated waste into the environment.

• These costs historically have not been included in the price of production.

Ex.: car exhaust; cigarette smoke

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Pollution damage costs:

• In general, pollution damage costs are identified in terms of the losses of or damage to plants and animals and their habitats; aesthetic impairments; rapid deterioration to physical infrastructures and assets; and various harmful effects on human health and mortality.

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So, what IS the Optimum Amount of Pollution, economically speaking??

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So, what IS the Optimum Amount of Pollution, economically speaking??

In words: The optimum amount of pollution is where the COST of removing the pollution intersects with the COST of damage from the pollution. Removing zero pollution (allowing all pollution) is too damaging to the environment and health and removing ALL pollution (preventing ALL pollution—which would be AWESOME) costs too much in terms of $$$$. Therefore, we remove/prevent as much as we can without causing prices of everything to be too high to afford!Tuesday, May 24, 16

What about POSSIBLE threats for the future?

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What about POSSIBLE threats for the future?• The Precautionary Principle--holds that

society should take action against certain practices when there is potential for irreversible consequences or for severe limits on the options for future generations-even when there is as yet no incontrovertible scientific proof that serious consequences will ensue.

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What about POSSIBLE threats for the future?• The Precautionary Principle--holds that

society should take action against certain practices when there is potential for irreversible consequences or for severe limits on the options for future generations-even when there is as yet no incontrovertible scientific proof that serious consequences will ensue.

Huge Example: Global Warming.Tuesday, May 24, 16

Critical Questions:

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Critical Questions:1. Could we mandate ZERO pollution?

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Critical Questions:1. Could we mandate ZERO pollution?2. Should we mandate ZERO pollution?

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Critical Questions:1. Could we mandate ZERO pollution?2. Should we mandate ZERO pollution?3. Who or what is in charge of enforcing environmental

law?

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law?4. Are US waters and air cleaner or less clean today than

in 1940?

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in 1940?5. What are three reasons for cleaner water and air in the

US today than in 1940?

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in 1940?5. What are three reasons for cleaner water and air in the

US today than in 1940?6. Name an activity that is 100% ZERO RISK.

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Let’s play a game:

• http://www.quia.co m/cb/110617.html

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http://www.quia.com/cb/110617.html

http://www.quia.com/cb/110617.html

Environmental Laws and the Relationship of Risk …...Carson published “Silent Spring” and...

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