Estimating macroeconomic effects of proposed safety and environmental regulations using the new DRI annual model of the US economy

Conference · Sat Jan 01 04:00:00 EST 1983

OSTI ID:6098488

Teotia, A P; Santini, D J; Caton, C

The long-run macroeconomic effects of proposed environmental and safety regulations are analyzed by use of DRI's (Data Resources, Inc.) new annual model of the US economy. This annual model has fewer variables than the DRI quarterly US economy model. Many short-run cyclical factors have been condensed while long-run supply factors have been enhanced. The model was used to estimate the macroeconomic effects of proposed simultaneous application of (1) new safety regulations regarding air bags or automatic seat belts on cars in 1984 and thereafter, and (2) tight acid-rain environmental regulations for coal-using electric utilities and industry. The effects of the regulations while favorable in the short run, were found to be quite adverse over the long run. Regulatory effects were further analyzed under the assumption that the initial application of regulations was accompanied by a shock in world oil prices (similar to situations in the 1970s when regulatory costs rose simultaneously with the two major energy price shocks). However, a synergistic effect between the shock and new regulation cost was not found.

• Research Organization: Argonne National Lab., IL (USA); Data Resources, Inc., Lexington, MA (USA)
• DOE Contract Number: W-31109-ENG-38
• OSTI ID: 6098488
• Report Number(s): CONF-830558-2; ON: DE83014324
• Country of Publication: United States
• Language: English

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ACID RAIN
ATMOSPHERIC PRECIPITATIONS
AUTOMOBILES
CARBONACEOUS MATERIALS
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POLLUTION REGULATIONS
POWER
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RAIN
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SAFETY
THERMAL POWER PLANTS
USA
VEHICLES