EPA regulation of aircraft emissions could hurt green innovation
A study of the economic impacts of air quality regulations on American manufacturing plants between 1972 and 1993 conducted by the National Bureau of Economic Research found that the economic cost of such regulations caused a decline of 8.8 percent of profits in the manufacturing sector. That’s $21 billion per year that did not go to employee wages and couldn’t be used on research and development. Reduced economic output in the face of rising population numbers also produces a drag on the overall economy and R&D initiatives are often the subject of the first budget cuts during economic downturns. All of this points to a downward spiral in which increased environmental regulations actually pose an obstacle to the development of the green economy in the United States.