Clean Air Helps the Economy

The reasoning is fairly straightforward. When the economy is functioning well, the impact of new environmental regulation on job growth is roughly neutral, for two reasons. First, the direct effects of regulatory changes generally cut in opposing directions. Take the economic impact of the air toxics rule. The rule requires investment in equipment to abate and control pollution, which will directly create jobs?people must be hired to manufacture and install the scrubbers, filters, and baghouses that will reduce toxic emissions. But this extra investment adds to the cost of producing energy. These costs are passed on to energy-using industries, which pass them on to consumers in the form of higher prices. That reduces demand for goods and services, and so destroys jobs.

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