Environmental regulation and economic productivity - Essay Example

? 6th December, Introduction Some economists says that environmental regulations and economic productivity drag Those who support environmental regulations and economic productivity are right. Environmental regulation and economic productivity Economic activities and environment are two things, which work together for smooth production of goods and services. The surrounding that is around any company, firm or an industry is therefore governed by the rules and regulations. These regulations are controls all the activities which are harmful to the environment. Additionally, environmental regulations can affect the economic life of a country either positive or negative depending with strictness of the enforcing body. On the other hand, there are numerous advantages associated with these regulations. Some economists argue that environmental regulations sometimes drag the economist in a way that does not fully encourage investment in some country. In united state of America environmental regulations and productivity has been the daily debate, because of many firms and companies that have been establish in lower regions. However, it is not only in America where environmental regulation is being discussed only but also it is a global alarm. This paper will focus on the basic regulations that have been set by the international body to regulate environmental pollution. Meanwhile, it will also analyze both positive and negative effects of environmental regulations to the production. In this sense, this research will enhance fundamentals, which should be set to maintain environmental efficiency to enable the economists run their business with friction. This matters with the how the environment and the business are relate to each other together with productivity process. Furthermore, it will also state how the innovators take their part seriously in development economic activities. Consequently, this easy analyses theories that have come up to support environmental regulations and productivities. Environmental regulations and economy Economists have the notion of thinking that all things happens through assumption therefore, their belie vises have never died. This means that they also have an assumptions that environment must either affect the economy of a country negative or positive. Although these arguments have risen among several organizations, the fact remains that yet to be defined. Most of their research shows that environmental regulation are bas most of the impacts on economic growth. Additionally, they show that tight regulations such as emission of gases could be expensive to tackle and reduce their effects to the living organisms. Most of the industries use the fuel to that is harmful to the ozone layer. Impacts of state environmental policies on average annual growth 1990-1992 Economic indicators Coefficient probability No Relationship Odds of a negative Relationship Gross rate Non-farm employment Manufacturing employment Business failure rate -.36 0.32 -0.13 0.58 -0.14 0.66 -13.59 0.22 3.2:1 1:2:1 1:2:1 1:142 The research shows that among the surviving companies in the world, the rate of pollution will depend on the production processes that are involved. The studies shows have shown that the economists know that regulations are seldom good for the economy unless the mutual benefits are spend on outweighing the cost of production. Hence, most of them end up spending a lot of time evaluating the cost and the significances of proposed regulations and productivity. It has also been suggested that economists that regulations could be a good business opportunity for some other innovators even though high costs are imposed on them. For instance, producer/manufacturers that are the origins of discovering good ways of doing away with the environmental pollution play a big role to maintain the prices low through profit analysis. Additionally, the economists may tend to exploited profit from the sellers because of technology. But, some business ideas can makes others to soar however, regulations argues that environment regulations leads to reduce the cost of innovation in a direct method to increase profit as well as reducing pollution. United state of America environmental regulations and productivity Environmental regulations have been widely discussed in united state of America according to the economic cost. This activism began some years back with an aim of reducing and restricting pollution and emission for a duration of time regarding that through four decades clean water and air were inadequate. The act bill was enforced to make it as a law to maintain environmental regulation. It suggested that emission and other pollutants should be reduced with immediate effects in order to reduce the so-called global warming. However , this actor bill was further seconded by introduction of conventional wisdom is was so much strict on environmental standards where they end up on rising the cost of living. In the same came polluting firm’s costs of production was a major concern that awakened united state of American’s firm’s positions in global market also called international market. There for leading to an increased food and cost of to be high. United state of America environmental regulations and productivity Environmental regulations have been widely discussed in united state of America according to the economic cost. This activism began some years back with an aim of reducing and restricting pollution and emission for a duration of time regarding that through four decades clean water and air were inadequate. The act bill was enforced to make it as a law to maintain environmental regulation. It suggested that emission and other pollutants should be reduced with immediate effects in order to reduce the so-called global warming. However , this actor bill was further seconded by introduction of conventional wisdom is was so much strict on environmental standards where they end up on rising the cost of living. In the same came polluting firm’s costs of production was a major concern that awakened united state of American’s firm’s positions in global market also called international market. There for leading to an increased food and cost of to be high. The annual survey shows that 1.3 million industries produce a fair quality regulation on economic and environmental control. thus, following the American act on water and air the environmental protection agency set up a national air quality standard at a minimum of air quality whereby all the countries must meet with regards to the following pollutant criteria, sulfur dioxide, carbon monoxide, total amount of particles available in the atmosphere and troposphere layer (ozone layer). All Americans states therefore are required to adhere to that regulation in order to avoid relevant pollution that might exceed above the federal standards. the counties which were known as embitters were subjected to a big regulatory oversight more than the others who non emitters or polluters. The researches proofs that most of the surviving firms /plants are the most pollutants industries where the total nonattainment designations are said with associates almost 2.6% percent of reduced total factor production within the industries which emit the standard pollution. This is therefore achieved through holding a constant some essential business elements such as material, labor and capital. Environmental convention prevailing the ozone recently have been associated with a large negative impacts on productivity, even though these results do not show clear evidence among the emitters of particles and carbon dioxide. In most countries emission of carbon dioxide appears to be quite increasingly especially in countries with refinery industries like Middle East countries, American, china among other developed countries. These gases have greatly resulted to change in climate where the amount of rainfall has reduced per millimeter (mm) due to global warming. The ozone layer according to the research has been destroyed in a big portion due to emission of carbon monoxide. In addition, this gas has lead to acidic rainfall, which as a result has brought agricultural sector under a very big stress. But, the question is what are the safety measures to be taken against the developed countries who are seemed to be the models for this situations?. This is because these countries posses veto power hence; they tend to have the final decision during environmental regulation summits. In the estimated percentage of 2.6, it understates the fact loss in output due to what the economist’s calls nonattainment designation for average of three seasons. This is with respect to the estimate that is based on comparison between non-emitters and emitters. These groups have also been observed to be controlled by the clean air act. In the second analyses, an estimate results show the industries continue to operate even though they are seemed to be reasonable to take for granted that industries are the most harmful elements to the environment. This relevance stands in a chance to confound the prices increase and output decrease and sample selection on survival for the best producer with the large estimates output to the customer. The world organizations have come up with fantastic methods to maintain environmental standards through regulation of business activities, which are said to be the enemies of environment. Industries on the other hand should find alternative ways to carry on their production process in an environmental friendly, to defeat and achieve the global goals, which are nowadays intolerable any more. In the estimated percentage of 2.6, it understates the fact loss in output due to what the economist’s calls nonattainment designation for average of three seasons. This is with respect to the estimate that is based on comparison between non-emitters and emitters. These groups have also been observed to be controlled by the clean air act. In the second analyses, an estimate results show the industries continue to operate even though they are seemed to be reasonable to take for granted that industries are the most harmful elements to the environment. This relevance stands in a chance to confound the prices increase and output decrease and sample selection on survival for the best producer with the large estimates output to the customer. The world organizations have come up with fantastic methods to maintain environmental standards through regulation of business activities, which are said to be the enemies of environment. Industries on the other hand should find alternative ways to carry on their production process in an environmental friendly, to defeat and achieve the global goals, which are nowadays intolerable any more. Environmental regulations Regulations imposed on the environment is said to reduce productivity. Even though there are great alarm immediate to the productivity has decelerated, the height, stringency of environmental. Regulation has continued to rise progressively across the world since 1970s as environmental value has implicit growing significance on both the political and civic agenda. In the United States, total Pollution abatement management overheads are about 1.5-2.5% of GDP per year. Pollution abatement Control expenditures (PACE) in manufacturing, single-handedly, have improved by more than 137% among 1979 as well as 1993 at a mix yearly rate of approximately 6%. By all indication, this tendency will go on. The gross expenses related with meeting environmental regulation are very far above the ground and of rising concern. However, does this correctly reflect the actual costs of regulation? PACE Either may, in fact, under or over value the actual expenses of regulation. For instance, if pollution abatement management expenditures are mist-calculated, as well as miss such costs as the time used up by managers in charge of environmental regulators and regulations, PACE will undervalue the real cost of regulation. in contrast, if environmental regulation induce vegetation to install cleaner, additional efficient expertise, pollution abatement expenditures could be enhance productivity so PACE will over-estimate the real cost of environmental regulation. Therefore, the total cost of regulating the environment may vary considerably from the net cost. A great body of literature attempts to measure the consequence of environmental regulation on productivity. Earlier experiential work indicated that environmental regulation shows an adverse effect on. Productivity, Also there are other cases where researchers have established that it contributed significantly to the productivity hold back in the U.S. nevertheless, the most current deliberations relating between environmental regulation and productivity put forward that these results are not supposed to be negative -- and might, indeed be constructive (see Jaffe et al (1995). An observable query that comes up from here or from this literature is why there is no agreement on the effects of environmental regulation on productivity? Speculations in this very literature may well be perplexed by choice bias and quantifying mistakes or error that can explain the survival of the contradictory results. choice bias can happen as plants which be capable of nearly all easily implement pollution decrease can really choose to take on such abatement action with no the force of regulation. Government and environmental regulations and economic productivity Almost in every country the government plays a big part to educate people the important of having conducive environment. It is also for every individual to learn how to fight the environmental pollution through tree planting and reducing deposition of garages. The government hereby plays a role of setting down the rules and regulations through which the plants are well controlled. Hence, it has enforced by law such as launching campaign to ban unleaded fuel because they tend to be unhealthy to the environment. In the developed countries, the government’s sets simple by laws to limit emission in order to reduce environmental hazards associated with pollution. Even though, the government intervenes on this issue sometime it is found that this government may also encourage growth of economic activities or discourage. When the government imposes high taxations, tariffs or custom duty might tend to reduce the number of investors hence reducing entrepreneurial interest to such a country. Therefore, the government should be wise when aiming to interfere with economic and productivity. It is also true that if, the government desires to attract more investors, it should practice favorable methods which should encourage the them to invest in the country, such method can be reduced cost of lands, incentives to growing companies, grants and loans and lowering tax. Through, these issues the government is able to analyze its economic stability with minimal engagement. The government should not leave the burden of reducing emissions to the industries and processing plants but also is should be a role model to fight Kyoto. Meanwhile, the government should also make sure that most of industrial activities are under control to limit emission and other pollutants. In conclusion, environmental regulation and economic productivity has been analyzed as a basic tool through which the plants are generally force to reduce the emission. Although this has happened to be so much speculating, environmental regulations must be eligible of to handle many cases such as reduced production in agricultural sector. The essay has clarified the similarities between environment and production activities whereby in most cases the plants are being accused as the biggest and the core causes of environmental pollution through emission of gases. The gases also have been discussed to cause hazardous effects to the ozone layer thus causing global warming. Through environmental regulations and economic productivity scientists have indeed resulted to formation of international bodies with the aim campaigning to reduce environmental pollution. Works cited Ma?ler, Karl-Go?ran, and Jeffrey R. Vincent. Handbook of Environmental Economics. Amsterdam: Elsevier, 2003. Internet resource. Managi, Shunsuke, and Shinji Kaneko. Chinese Economic Development and the Environment. Cheltenham, UK: Edward Elgar, 2009. Internet resource. Managi, Shunsuke. Technology, Natural Resources and Economic Growth: Improving the Environment for a Greener Future. Cheltenham: Edward Elgar Pub, 2011. Internet resource. Read More