An interesting take on recessions and changes in regulation norms in Greece...
http://www.nytimes.com/2013/01/14/world/europe/seeking-revenue-greece-approves-new-mines-but-environmentalists-balk.html?pagewanted=all&_r=0
The trade-off between environmental damage and job creation is the burning question of environmental economic theory and in a place like Greece creating jobs in a recession is changing overall standards for the environment.
What are some case studies in the U.S. of Macro factors affecting policy like they are in Greece? I can think of quite a few.
Happy Monday
I loved how clearly incentives influenced attitudes towards the project.
ReplyDelete"The new mining operations have divided the region, in some cases setting brothers against each other. Most often it is those that live close to the sea, where tourists arrive in the summer, who oppose the project. Those that live in the hills where there is little work generally support it." And here, "In the last year, opponents of the projects, many of them retirees, have staged more than a half-dozen demonstrations..."
Note that those whose income relies on tourism are opposed to the project, as are retirees who are much more concerned about the cleanliness of their environment than about jobs and income (they're already living on a fixed income). Meanwhile, those who haven't gotten in on the tourism gravy train are more eager for a new sector to shake things up. I just hope some smart economists are making the best cost-benefit analyses they can!
In the U.S, I'm reminded of how president Obama prevented the EPA from implementing stricter air standards due to concerns from his economic and political advisors about what impact it might have on the economy (and, more importantly, his reelection chances).
It's also worth remembering that pollution can suck
ReplyDelete