State Environmental Regulation and Economic Development: Are They Compatible?

Abstract

An underlyingussumption of the partial preemption apprmh is the belief that minimum federal standmds contribute to the prospective decentralization of environmental protection programs by removing or reducing industry incentives to shop aroundfor states with a more lenient regulatory stance. This assumption was examined through a survey of chief executive oficers of pollution‐generating firms. Tlze data suggest that corporate officials see regulatory climate m an important component of overhead ctxits. The author concludes that the desire to retain industries within state boundaries does inhibit the promulgation of strict environmental regulat ions by public officials.