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Cost in lost productivity of new regulation in the US chemical industry

Journal Article · · J. Policy Model.; (United States)
An analysis of the cost of lost productivity between 1971-1976 due to regulation in the chemical industry finds that the loss of productivity tends to grow because labor has less capital to work with when there is more regulation requiring capital investment. The loss of labor productivity can fall over time, however, if either energy or material costs rise enough. The estimated loss of labor productivity caused by capital invested to meet new regulation for the overall chemical industry rose from 1.0% in 1971 to 2.3% in 1976. This rise is large enough for policy makers to take notice, either by relaxing regulation or with policies that increase the quantity of capital. 11 references, 1 table.
Research Organization:
OECD, Paris, France
OSTI ID:
6117595
Journal Information:
J. Policy Model.; (United States), Journal Name: J. Policy Model.; (United States) Vol. 6:3; ISSN JPMOD
Country of Publication:
United States
Language:
English