“The effects on jobs are negligible. They’re not job-creating or job-destroying on average,” said Richard Morgenstern, who served in the EPA from the Reagan to Clinton years and is now at Resources for the Future, a nonpartisan think tank.No kidding. Who'd have guessed that? Probably the same folks who have realized that tax cuts don't create jobs.
Almost a decade ago, Morgenstern and some colleagues published research on the effects of regulation  [PDF] using 10 years’ worth of Census data on four different polluting industries. They found that when new environmental regulation was applied, higher production costs pushed up prices, resulting in lost sales for businesses and some lost jobs, but the job losses were also offset by new jobs created in pollution abatement.
“There are many instances of regulation causing a specific industry to lose jobs,” said Roger Noll, co-director of the Program on Regulatory Policy at the Stanford Institute for Economic Policy Research. Noll cited outright bans of products—such as choloroflorocarbons or leaded gasoline—as the clearest examples.
Friday, September 23, 2011
Do Regulations Kill Jobs?
Not really (via the Big Picture):