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Nobel Laureates

The Economic Impacts of Environmental Regulations on the U.S. Copper Industry


Volume: Volume 10, No. 2

Issue: Autumn 1979

Pages: pp. 589-618

Authors: Raymond S. Hartman, Kirkor Bozdogan, and Ravindra M. Nadkarni

Title: The Economic Impacts of Environmental Regulations on the U.S. Copper Industry

Abstract: This paper reports the simulated impacts on the U.S. copper industry of pollution abatement regulations promulgated by the Environmental Protection Agency (EPA). The impacts are simulated by using an econometric model developed for the EPA. The model takes explicit account of the imperfectly competitive pricing and production decisions of the major group of domestic primary copper producers. Furthermore, the model explicitly incorporates the effects of pollution abatement regulations upon the costs (fixed and variable) of copper production and upon capacity expansion and replacement. Environmental regulations relevant to the U.S. copper industry are identified and discussed. The economic impacts of compliance with the regulations are then simulated and discussed.


JEL Classification

Industry Studies Manufacturing Metals iron, steel, and other (6312)
Conservation and Pollution (7220)