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The quality of water is central to all of the roles that water plays in our lives. From the beauty of natural waterways teem- ing with wildlife, to the vital livelihoods that clean rivers and streams support, to the essential role that safe water plays in drinking water and health – good water quality is fundamental to the network of life and livelihood that water supports. Water is the source of life on earth, and human civilizations blossomed where there was reliable and clean freshwater. Use of water by humans – for drinking, washing, and recreation – requires water free from. | This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title Studies in Public Regulation Volume Author Editor Gary Fromm ed. Volume Publisher The MIT Press Volume ISBN 0-262-06074-4 Volume URL http www.nber.org books from81-1 Publication Date 1981 Chapter Title The Political Economy of Federal Regulatory Activity The Case of Water-Pollution Controls Chapter Author Robert A. Leone John E. Jackson Chapter URL http www.nber.org chapters c11433 Chapter pages in book p. 231 - 276 5 The Political Economy of Federal Regulatory Activity The Case of Water-Pollution Controls Robert A. Leone John E. Jackson Increasingly policymakers have resorted to regulation of private corporate activity as a means of achieving socially desirable ends Schultze 1977 Leone 1977 . Despite this growth in regulation there has been little investigation of the dynamic political process by which regulations are formulated and implemented. There has also been little systematic analysis of the dynamic economic process of regulatory compliance. Several aspects of the regulatory approach to public problem solving merit investigation. Perhaps the most obvious question is whether regulations achieve desired ends. It is certainly possible for Congress to mandate certain goals and to establish bureaucratic machinery to promulgate the necessary rules yet these two acts alone do not guarantee attainment of the stated objectives. We leave examination of this most basic question to others who are already so engaged.1 To address these questions we present a model of policy-development processes and industry-response processes. At the core of this model are the economic costs and benefits created by regulation and their distribution among firms and regions. Analysts customarily measure total benefits and a limited set of aggregate total costs estimated by comparing the equilibrium prices and outputs predicted with the static economic model.2 Our model provides .
