Economic impact of the good neighbor policy of the EPA
To explore and explain the consequences of two recent landmark USSC decisions in the realm of environmental regulation, and to determine the relationship between Law, economic consequences and regulation using the LIDM model. This paper will attempt to answer the questions of how the balance of environmental issues and economic welfare can be viewed as uniform and inter-related issues. It will also attempt a constructive criticism of the pre-emption doctrine and Supremacy clause influence upon state, regional and activist attempts to abate pollution.
Data/Methods
The author will discuss the USSC cases affecting interpretation of the Clean Air Act, including the landmark cases American Electric Power v. Connecticut [2012] and EPA v. EME Homer City Generation [2014]. These cases will be compared and examined for their actual and potential economic impact using LIDM [Legal Insight Decision Making] and economic analysis of selected industry data which marks a decline in the coal industry and related power firms performance. The history of the Clean Air Act, the issues of state versus federal regulation, the practice of cap and trade, the pre-emption doctrine assault on environmental measures taken by regional and state activists will be examined through the lens of LIDM.
Results/Expected Results
USSC "reverse and remand" decisions typically create a flurry of regulations. The regulations often create a period of uncertainty for investment decisions and related economic decisions. It is expected that these USSC decisions will have a potent negative impact upon coal burning power plants in the USA...and perhaps throughout the world.