Government controls and productivity: the case of anti-pollution programs

Journal Article · Mon Mar 10 04:00:00 EST 1980 · Bus. Am.; (United States)

OSTI ID:5302499

Cox, W A

Government regulation can impair productivity in a number of ways. When measuring productivity in terms of output per unit input, any diversion of capital, labor, or land from production of measured output to tasks required to meet regulatory demands or standards will impair productivity. Introduction of new ideas and technology may also be retarded by regulatory delays. While the effect of regulation on output per unit input is for the most part unknown, estimations have been made for regulations pertaining to pollution abatement. Business has always borne some of the costs to protect the environment; but, since 1967, the article infers that new environmental controls, imposed at all levels of government, have reduced output per unit input from 100% (using 1967 as a base) to 98.82% in 1978. The usual pattern of initially rising costs in terms of productivity growth followed by smaller annual costs is not the case with pollution abatement because the standards are often not stable but become increasingly more stringent, thereby altering the annual costs. 1 figure, 1 table. (SAC)

• OSTI ID: 5302499
• Journal Information: Bus. Am.; (United States), Journal Name: Bus. Am.; (United States) Vol. 3:5; ISSN BUAMD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
290300 -- Energy Planning & Policy-- Environment
Health
& Safety
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
COST
ECONOMIC IMPACT
FINANCIAL INCENTIVES
GOVERNMENT POLICIES
INDUSTRY
POLLUTION REGULATIONS
PRODUCTION
PRODUCTIVITY
REGULATIONS