POLITICAL AND ECONOMIC INFLUENCES ON PRIVATE-SECTOR POLLUTION-CONTROL COSTS

Drawing upon previous studies that have assessed the impact of political and economic factors on macroeconomic performance as well as regulatory policymaking, this research examines the magnitude as well as direction of those influences on private-sector pollution control costs in the United States. Our analysis demonstrates that deregulation efforts implemented by the Reagan administration, Democratic congressional strength, and the Environmental Protection Agency's abatement and enforcement outlays are important predictors of the compliance costs associated with environmental regulations.