David Keiser, Joseph S. Shapiro, 05 October 2019

The Trump administration recently repealed the US Clean Water Rule, which sought to extend federal water quality protection to cover most rivers and streams. This column seeks to better understand the effectiveness of such laws that govern US surface and drinking water quality, the efficiency of these laws, and the state of economic research on water quality. It finds that regulations governing surface water quality are more likely to fail cost-benefit tests compared to drinking water and air pollution regulations, possibly due to an underestimation of the benefits of surface water pollution control.

Spencer Banzhaf, Andrew Chupp, 01 July 2010

In a federal system like the US or EU, should the central government or the individual governments regulate environmental damage? This column argues that – subject to certain conditions – individual states often undervalue pollution whereas a centralised system, by imposing an average price, often overshoots the optimum price – but mispricing too high causes fewer distortions than mispricing too low.

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