The current debate on jobs and environmental regulation too often relies on thinly-supported forecasts about jobs “killed” or “created” by public protections. In this debate, the larger costs and benefits of protections for clean air or water can get lost.
In Regulatory Red Herring, the Institute for Policy Integrity looks at how economics can be used to evaluate the effects of environmental regulation on layoffs and hiring.
It also looks at models that are used to make predictions about the jobs impact of regulation. These modeling tools have important limitations that are rarely communicated, leading to misunderstanding and counterproductive political debates.