A growing number of economists argue that government attempts to protect the environment are damaging not only economic welfare and prosperity but may also be leading to greater levels of environmental degradation.
They argue that environmental regulations are often poorly thought out and are expensive for the business to comply with and the government to police. They argue that some initiatives are so poorly designed that they lead to a worsening of the situation. For example, some economists argue that, attempts to encourage the recycling of paper actually leads to a reduction in tree planting and therefore increases CO2 levels in the atmosphere.
They argue that the use of environmental taxation and tradeable permits increases the cost of production and so leads to higher prices and a reduction in economic welfare. They argue that subsidies for green production distort markets and are costly to administer. Finally some economists even question the science upon which much of the move towards environmentalism is based.
However, other economists argue that environmental pollution is a form of market failure and that governments must take some action to correct the failure. They argue that well designed policies that work with the market can improve outcomes not only for current generations but also future generations.
lydiajane74 answered the question on July 5, 2018 at 08:08
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