Evaluating Impacts of Different Variables on Environmental Regulation Policies

Abstract

Government needs to make proper policies according to different variables so that this paper intends to exam the impacts that different variables have on the environmental regulation policies. Using the benefit-cost analysis, the government can choose its optimum policy level with respect to different variables, like capital, labor, and productivity. After analyzing the empirical data from 1970 to 2011 for the capital, labor, productivity and determining policy level based on different policies the government made in the U.S, the result shows a positive correlation between policy level and labor, policy level and productivity, and a negative correlation between policy level and labor force with a roughly ten-year time lag.