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

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

Bell Journal of Economics, 1979, vol. 10, issue 2, 589-618

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.

Date: 1979
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