The Clean Air Act and the Economy | US EPA

The Clean Air Act protects many Americans from pollution-related health problems and premature death, and improves the health and productivity of the U.S. work ... Skiptomaincontent Officialwebsitesuse.gov A.govwebsitebelongstoanofficialgovernmentorganizationintheUnitedStates. Secure.govwebsitesuseHTTPS Alock(LockAlockedpadlock)orhttps://meansyou’vesafelyconnectedtothe.govwebsite.Sharesensitiveinformationonlyonofficial,securewebsites. CleanAirActOverview ContactUs TheCleanAirActandtheEconomy CleanAirActBenefit-CostStudies BenefitsandCostsoftheCleanAirAct Today,asinthepast,theCleanAirActcontinuestocutpollutionandprotectthehealthofAmericanfamiliesandworkers. FewerprematuredeathsandillnessesmeansAmericansexperiencelongerlives,betterqualityoflife,lowermedicalexpenses,fewerschoolabsences,andbetterworkerproductivity.Peer-reviewedstudiesshowthattheActhasbeenagoodeconomicinvestmentforAmerica. Since1970,cleanerairandagrowingeconomyhavegonehandinhand. TheActhascreatedmarketopportunitiesthathavehelpedtoinspireinnovationincleanertechnologies–technologiesinwhichtheUnitedStateshasbecomeaglobalmarketleader. Onthispage: TheCleanAirActprotectsmanyAmericansfrompollution-relatedhealthproblems. TheCleanAirActhasbeenagoodeconomicinvestmentforAmericans. Experienceshowsthatcleanerairandagrowingeconomycangohandinhand. TheAct’spublichealthsafeguardsencouragetechnologyinvestments. EnvironmentaltechnologyandservicesisalargeandgrowingU.S.industry.   TheCleanAirActprotectsmanyAmericansfrompollution-relatedhealthproblemsandprematuredeath,andimprovesthehealthandproductivityoftheU.S.workforce. Formorethan40years,theCleanAirActhasfosteredsteadyprogressinreducingairpollution,allowingAmericanstobreatheeasierandlivehealthier. Section812oftheCAAmandatedthatEPAconductoneofthemostthorough,public,andexpertreviewedanalysisofandenvironmentalstatueeverconducted.That peer-reviewed2011EPAstudy foundthat,in2020alone,reductionsinfineparticlepollutionandozonepollutionachievedbytheCleanAirActAmendmentsof1990:1 Avoidedmorethan2300,000prematuredeaths,200,000heartattacks(acutemyocardialinfarction),millionsofcasesofrespiratoryproblemssuchasacutebronchitisandasthmaattacks,and135,000hospitaladmissions. Prevented17millionlostworkdays,improvingworkerproductivitywhichcontributestoastrongereconomy. Keptkidshealthyandinschool,avoiding5.4millionlostschooldaysduetorespiratoryillnessandotherdiseasescausedorexacerbatedbyairpollution. Thesefiguresdonotincludethehealthbenefitsofreducingairpollutantsotherthanfineparticlesandozone,ortheenvironmentalbenefitsofreducingairpollution. Amongmanyothereconomicbenefitsofcleanerairarereduceddamagetocropsandtimberyields,andimprovedabilitytoenjoyscenicvistas.2 TheCleanAirActhasbeenagoodeconomicinvestmentforAmericans. Multiplepeer-reviewedeconomicstudiesshowthatthesubstantialpublichealthbenefitsoftheCleanAirActarefargreaterthanthecostsofachievingthem.3 Mostrecently,EPA’speer-reviewed2011studyfoundthatcleanairprogramsestablishedbythe1990CAAamendmentsareexpectedtoyielddirectbenefitstotheAmericanpeoplewhichvastlyexceedcompliancecosts.4 Thestudy'scentralbenefitsestimatein2020exceedscostsbyafactorofmorethan30-to-1,andthehighbenefitsestimateexceedscostsby90-to-1.Eventhelowbenefitsestimateexceedscostsbyabout3-to-1. Inadditiontodirectbenefitsvastlyexceedingdirectcosts,economy-widemodelingconductedforthestudyfoundthattheeconomicwelfareofAmericanhouseholdsisbetterwithpost-1990cleanairprogramsthanwithoutthem.  Economicwelfareandeconomicgrowthratesareimprovedbecausecleanerairmeansfewerair-pollution-relatedillnesses,whichinturnmeanslessmoneyspentonmedicaltreatmentsandlowerabsenteeismamongAmericanworkers.Thestudyprojectsthatthebeneficialeconomiceffectsofthesetwoimprovementsalonemorethanoffsettheeconomicimpactsfromexpendituresforpollutioncontrol. TheEPAreportreceivedextensivereviewandinputfromtheAdvisoryCouncilonCleanAirComplianceAnalysis,anindependentpanelofdistinguishedeconomists,scientistsandpublichealthexpertsestablishedbyCongressin1991. Another,earlierpeer-reviewedEPAstudyexaminedthebenefitsandcostsofCleanAirActprogramsfrom1970to1990,andalsofoundthatthepublichealthprotectionandenvironmentalbenefitsexceededthecostsbyalargemargin.5 Experienceshowsthatcleanerairandahealthyeconomycangohandinhand. MorethanfortyyearsofexperiencewiththeCleanAirActhasshownthatAmericacanbuilditseconomyandcreatejobswhilecuttingpollutiontoprotectthehealthofourcitizensandourworkforce. Between1970and2019,aggregateemissionsofcommonairpollutantsdropped77percent,whiletheU.S.grossdomesticproductgrew285percent.6 Totalprivatesectorjobsincreasedby223percentduringthesameperiod.(Formoreinformation,Clickhere)7  Onereasonthatenvironmentalprotectionandahealthyeconomycangohandinhandisthatthemoneyspentonreducingpollutiondoesnotdisappear. Itgoestocompaniesthatdesign,build,install,maintainandoperatepollution-reducingprocessesandequipment. ThecontributionofthepollutantcontrolindustrytooverallU.S.economicactivityandgrowthshouldnotbeoverlooked.  Environmentalcostsareasmallpercentageofindustryrevenues.Accordingto2005datafromU.S.manufacturers,theirtotalpollutionabatementspending(PDF)8(104pp,4.67MB,2008)representedlessthanonepercentofthe$4.74trillionvalueofthegoodstheyshipped(PDF).9(340pp,1.58MB,2006)Theabatementcostsincludecapitalandoperatingcostsforallpollutioncontrols,notjustthoserelatedtocleanair.Airpollutioncontrolisresponsibleforlessthanhalfofthesecosts. Mainstreamacademiceconomicresearchcontradictsbroadclaimsthatenvironmentalregulationsarebadforemployment. Althoughintheshorttermnewenvironmentalregulationscanhavesomepositiveandnegativeimpactsonemploymentindifferentsectors,studiesindicatethatthoseimpactsarelimitedandthattheoveralleffectofenvironmentalregulationsonreportedjobshifteventsareextremelyminorcomparedtootherfactors,suchasoveralleconomicgrowth,businesscycles,andchangesintechnology. Apeer-reviewedstudybyeconomistsatResourcesfortheFuture,anonpartisanWashington,D.C.thinktank,examinedtheimpactofenvironmentalcompliancecostsonemploymentinfourregulatedindustries(pulpandpaper,refining,ironandsteel,andplastics). Theyconcluded:“Wefindthatincreasedenvironmentalspendinggenerallydoesnotcauseasignificantchangeinemployment.”10 Anotherpeer-reviewedstudy publishedintheJournalofPublicEconomicsfound“noevidencethatlocalairqualityregulationsubstantiallyreducedemployment”intheLosAngelesbasinovera13-yearperiodof“sharplyincreased”regulation. “Infact,[theregulations]probablyincreasedlabordemandslightly,”theauthorsconcluded.11 TherequirementsbeingadoptedfortheLosAngelesareaweremorestringentthanthoseintherestofthecountry. Arelatedstudy foundthatdespitetheadditionalcostoftheLosAngelesarearegulations,productivityinthearea’soilrefineriesrosesharplybetween1987and1992,whilerefineryproductivitydeclinedinotherregions. “Weconcludethat[pollution]abatementcostmeasuresmaygrosslyoverstatetheeconomiccostofenvironmentalregulationasabatementcanincreaseproductivity,”thestudyconcluded.12 TheAct’spublichealthsafeguardsencouragetechnologyinvestmentsthatcanputunemployedorunder-employedAmericansbacktowork. Spendingbycompaniestoreducepollutioncreatesjobsinengineering,manufacturing,construction,materials,operation,andmaintenance. Inadditiontoincreasingemploymentintheenvironmentalprotectionindustry,environmentalstandardsalsocreateemploymentinindustriesthatprovidegoodstotheenvironmentalprotectionindustry.  Forexample: TheInstituteforCleanAirCompanies(ICAC)in2010estimatedthatimplementationofonerule–theCleanAirInterstateRulePhase1–resultedinapproximately200,000person-yearsofjobsintheairpollutioncontrolindustryovertheprevioussevenyears.13 Directandindirectlaborneedsforthosecontrolsincludedengineers,projectmanagers,boilermakers,andotherconstructionlaborforpollutioncontrols;workersinindustriesthatprovideconstructionmaterialssuchassteel,fabricatedsteelcomponents,andconcrete;workersthatprovideengineeredequipmentandspecialtymaterialssuchasslurrypumps,fans,motorsandcatalysts;andworkersinindustriesthatmanufactureandprocessreagentsforoperatingpollutioncontrols,especiallylimestoneandammonia.14 EPAvehicleemissionsstandardsdirectlysparkedthedevelopmentandapplicationofarangeofautomotivetechnologiesthatarenowfoundthroughouttheglobalautomobilemarket. Thevehicleemissionscontrolindustryhasestimateddomesticannualsalesof$36billion.15 TheU.S.boilermakerworkforcegrewbyapproximately35percent,or6,700boilermakers,between1999and2001duringtheinstallationofcontrolstocomplywithEPA’sregionalnitrogenoxidereductionprogram.16 EnvironmentaltechnologyandservicesisalargeandgrowingU.S.industry TheUnitedStatesistheworld'slargestproducerandconsumerofenvironmentalprotectiontechnologiesworldwide,accordingtoaU.S.DepartmentofCommercereport(PDF)17(42pp,597KB,2010) In2018,theUnitedStates’environmentaltechnologiesandservicesindustrysupported1.6millionjobs. Theindustrygeneratedapproximately$345billioninrevenuesandexportedgoodsandservicesworth$47.8billion18-largerthanexportsofsectorssuchasplasticsandrubberproducts.19EnvironmentaltechnologyexportshelptheU.S.balanceoftrade,generatinga$26.9billionsurplusin2015.20 Airpollutioncontrolequipmentalonegeneratedrevenuesof$18billionin2008,includingexportsofapproximately$3billion.21  Thesizeoftheworldmarketforenvironmentalgoodsandservices-$1.12trillion22-iscomparabletotheaerospaceandpharmaceuticalindustriesandpresentsimportantopportunitiesforU.S.industry.23  IntheUnitedStates,approximately114,000companiesareengagedintheenvironmentaltechnologybusiness,accordingtotheCommerceDepartmentreport.24  Tolearnmoreaboutcleanairandtheeconomy,readtheSection812reports,BenefitsandCostsoftheCleanAirAct. References 1U.S.EPA,TheBenefitsandCostsoftheCleanAirActfrom1990to2020:FinalReport,OfficeofAirandRadiation,March2011.SeeTable5-6. ThisstudyisthethirdinaseriesofstudiesmandatedbyCongressintheCleanAirActAmendmentsof1990.ThereportreceivedextensivereviewandinputfromtheCouncilonCleanAirComplianceAnalysis,anindependentpanelofdistinguishedeconomists,scientistsandpublichealthexpertsestablishedbyCongressin1991. 2Ibid. Seechapter6. 3Seeforexample: U.S.EPA,TheBenefitsandCostsoftheCleanAirActfrom1990to2020:FinalReport,OfficeofAirandRadiation,March2011;U.S.EPA,TheBenefitsandCostsoftheCAA1990to2010:EPAReporttoCongress,OfficeofAirandRadiation,November1999; U.S.EPA,TheBenefitsandCostsoftheCAA,1970to1990:PreparedforU.S.CongressbyU.S.EnvironmentalProtectionAgency,October1997.  4Samesourceasendnote1.Seetabularsummaryofcost-benefitfindingsinAbstract. 5U.S.EPA,TheBenefitsandCostsoftheCAA,1970to1990:PreparedforU.S.CongressbyU.S.EnvironmentalProtectionAgency,October1997. 6SeeComparisonofGrowthAreasandEmissions,1980-2013. 7U.S.DepartmentofLabor,BureauofLaborStatistics. Employment,Hours,andEarningsfromtheCurrentEmploymentStatisticssurvey(National),forYears1970-2011.  The88percentfigurereflectsseasonallyadjustedemploymentfigures. DownloadedinMarch,2013.  SeriesIdentificationCES0500000001.   8U.S.CensusBureau,PollutionAbatementcostandExpenditures:2005,MA200(05),U.S.GovernmentPrintingOffice. IssuedApril2008. Seep.v. 9U.S.CensusBureau,StatisticsforIndustryGroupsandIndustries:2005,AnnualSurveyofManufactures,M05(AS)-1. IssuedNovember2006. Seep.10,Table1. 10Morgenstern,R.D.,W.A.Pizer,andJ.S.Shih.2002,JobsversustheEnvironment:AnIndustry-LevelPerspective.JournalofEnvironmentalEconomicsandManagement43(3):412-436. 11Berman,E.,andL.T.M.Bui.2001.EnvironmentalRegulationandLaborDemand:EvidencefromtheSouthCoastAirBasin.JournalofPublicEconomics79(2):265-295. 12Berman,Eli,andBui,LindaT.M.,EnvironmentalRegulationandProductivity:EvidencefromOilRefineries,TheReviewofEconomicsandStatistics,August2001,83(3):498-510.Copyright2001bythePresidentandFellowsofHarvardCollegeandtheMassachusettsInstituteofTechnology. 13November3,2010letterfromDavidC.Foerter,ExecutiveDirectoroftheInstituteofCleanAirCompanies,toSenatorThomasR.Carper. 14Ibid. 15ManufacturersofEmissionsControlTechnology.  16InternationalBrotherhoodofBoilermakers,BoilermakerLaborAnalysisandInstallationTiming,March2005,EPADocketOAR-2003-0053(docketoftheCleanAirInterstateRule). 17DOCInternationalTradeAdministration.EnvironmentalTechnologiesIndustries:FY2010IndustryAssessment,p.1(PDF)(42pp,597KB,2010)(accessedFebruary8,2011). 18Ibid,p1.USDepartmentofCommerceInternationalTradeAdministration2019TopMarketsReportEnvironmentalTechnologies:AMarketAssessmentToolforExporters,April2020  InternationalTradeAdministration:EnvironmentalTechnologySpotlight,TheEnvironmentalTechnologyIndustryintheUnitedStates 19U.S.CensusBureau,CenstatsDatabase,InternationalTradeData-NAICS,(accessedSeptember6,2011). 20Samesourceasendnote16,p.2,Figure1.USDepartmentofCommerceInternationalTradeAdministration2019TopMarketsReportEnvironmentalTechnologies:AMarketAssessmentToolforExporters,April2020  21Samesourceasendnote16,p.2andp.5,figure5 22Samesourceasendnote16,p.1.USDepartmentofCommerceInternationalTradeAdministration2019TopMarketsReportEnvironmentalTechnologies:AMarketAssessmentToolforExporters,April2020  23NetworkofHeadsoftheEuropeanEnvironmentProtectionAgencies,2005."TheContributionofGoodEnvironmentalRegulationtoCompetitiveness"(PDF)(12pp,121KB,2005) (accessedFebruary8 2011). 24Samesourceasendnote16,p.1.InternationalTradeAdministration:EnvironmentalTechnologySpotlight,TheEnvironmentalTechnologyIndustryintheUnitedStates ENVIRONMENTALTECHNOLOGYSPOTLIGHT TheEnvironmentalTechnologyIndustryintheUnitedStates ContactUstoaskaquestion,providefeedback,orreportaproblem.