The Economy and the Environment
The debate on environmental policy has been ongoing for some time now. However, this debate has never been as controversial as it is today. There have been attempts to roll back years of environmental legislation and regulation, and there have been moves toward environmental deregulation in a number of statehouses across the United States. These efforts are being driven by the belief that years of creeping environmental controls has negatively impacted the economy and weakened economic competitiveness. Many state governments are still coming to terms with recession of the 1990s and they hope that doing away with environmental regulations will stir economic growth to new heights.
Without a doubt, environmental deregulation will not be without costs. There has been significant progress toward cleaner air, water, and land. Environmental deregulation will certainly slow down this progress, if not reverse it. Consequently, there will be dire implications for public health, ecosystem, and the quality of life. It will be more difficult to protect and preserve plants, wildlife, habitats, and ecosystems that are already vanishing rapidly. Indisputably, most states will lose their natural heritage. Nonetheless, the impending economic gains from environmental deregulation might be worth the price.
In regard to the impact that the environment has had on the economy, a number of companies have reportedly pulled back from the verge of insolvency by environmental efficiency. There have also been an increased number of reports on the growth of green companies. This has given rise to the argument that vigorous environmental protection policies promote economic growth. On the other hand, there have also been reports of companies that have been negatively affected by environmental regulation. Nonetheless, there is no evidence regarding the probable economic gains from deregulation.
Environmental deregulation cannot be expected to result in measurable economic gains. I do not think that short-term drawbacks justify long-term goals. Environmentalism does not hinder economic growth. Those who expect to improve the business climate and economic competitiveness through environmental deregulation are misinformed. This strategy will not result in any significant economic gains. Rather, it will impose real environmental losses. Efforts should instead shift to factors that really affect the bottom line such as state tax and labor policies. Hence, if there is a conflict between the economy and the environment, the environment should always come first.
The case made for tapping into the oil supply in the Artic National Wildlife Refuge in Northeast Alaska focuses mainly on America’s diminishing domestic oil resources. Reliance on foreign suppliers increases as domestic production decreases. Consequently, the country’s national security is threatened and efforts to balance the import/export ratio are handicapped. The main advantage for tapping into this oil reserve will be decreased dependence on imported oil. However, it is unlikely that the oil reserve in the Artic National Wildlife Refuge will make much of a difference. America accounts for over 25% of oil consumption annually. With this consumption, in addition to the fact that the oil reserves in the U.S. are projected to be only 2% of the world’s oil reserves, Americans must rely on oil imports. One new oil reserve, no matter how large, cannot change the fact that the U.S will have to depend on oil imports for a large percentage of its petroleum needs.
Although it has been argued that new extraction techniques can be used to ensure that wildlife and oil development coincide, environmentalists have emphasized on the value of an undisturbed wilderness. It would be inhumane to intrude the habitat of wildlife when there are several alternatives to satisfy energy needs. The most reasonable thing to do would be to designate the Artic National Wildlife Refuge as Wilderness.
References
Cato, M. S. (2011). Environment and Economy (illustrated ed.). New York, USA: Taylor & Francis.
Meyer, S. (2010, June 21). The Economic Impact of Environmental Regulation`. Retrieved May 6, 2012, from http://web.mit.edu/polisci/mpepp/Reports/Econ%20Impact%20Enviro%20Reg.pdf
Organisation for Economic Co-operation and Development. (2010). Globalisation, Transport and the Environment (illustrated ed.). Paris, France: OECD.
