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Environmental Regulations and Business

Environmental Regulations and Business. Portney Porter and Van der Linde. EPA and Evolution of Fed. Reg. What is Public Policy? What levels? Who is involved in Env? What is Social Regulation versus Economic Regulation?. EPA and Fed Regulation. Environmental Regulation Choices

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Environmental Regulations and Business

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  1. Environmental Regulations and Business • Portney • Porter and Van der Linde

  2. EPA and Evolution of Fed. Reg. • What is Public Policy? • What levels? Who is involved in Env? • What is Social Regulation versus Economic Regulation?

  3. EPA and Fed Regulation • Environmental Regulation Choices • Non-Regulation – What are alternatives and why don’t they work? • Government Regulation (what are these?) • Zero-Risk • Technology Based • Balancing Approaches • What are problems with Command and Control? • Wisdom of central authority • Inefficient and costly? • Not equitable? • Hide true costs of products?

  4. EPA and Fed. Reg. • Taxing Pollutants • What is it? • How do you set right tax? • Marketable Permits • What is it? • What are issues? • How do you set right emissions levels?

  5. Green and Competitive: Ending the Stalemate • What stalemate? • Regulation and the Environment a good thing for organizations? Traditional vs. New thought? • Pollution = Inefficiency • Resource Productivity? Why is this important? • How does this argument relate to quality initiatives? • How might TQM work with Environmental programs? • Innovation’s role with Environment and Competitiveness • Two innovation types • End-of-pipe • Prevention • Examples? • Does Regulation drive innovation?

  6. Green and Competitive: Ending the Stalemate • Why is Regulation needed for Innovation? • A market drive may be needed to aid innovation. • What is meant by the “rarely see $10 bills on the ground?” • Inexperience causes a barrier to environmental innovation. • Organizational inertia is a barrier • What to do?

  7. Green and Competitive: Ending the Stalemate • Environmental Innovation Friendly Regulations • Create pressure that motivates companies to innovate. • Make sure regulations improve environmental quality • Alert and educate companies about ineffeciencies and areas for technological improvement • improve likelihood that innovations are environmentally friendly • create demand for environmental improvement • level the playing field making sure every one makes environmental investments

  8. Green and Competitive: Ending the Stalemate • What needs to be done Overall? • Remove “Static” thinking (organizations) • Make Regulations less adversarial more cooperative • Less specific regs….address “whats” let organizations worry about “hows” • Managers need to realize that environmental improvement is a competitive opportunity. (org) • Make environmental decisions internal….not just delegated to adversarial external parties (org) • resource-productivity rather than pollution control model must govern decision making (org)

  9. Green and Competitive: Ending the Stalemate • What do they recommend to managers? • Measure direct and indirect environmental impacts (can’t manage what you don’t measure). • Learn to recognize the opportunity cost of underutilized resources • create bias in favor of innovation based, productivity enhancing solutions • develop proactive relationships with regulators/environmentalists.

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