Do U.S. EPA Regulations Actually Make Global Pollution Worse?

<h2>Exporting pollution, one factory at a time.<a href="http://www.professorhollybell.com/wp-content/uploads/2014/03/ID-10043521.jpg"><img class="alignright size-medium wp-image-2680" alt="pollution" src="http://www.professorhollybell.com/wp-content/uploads/2014/03/ID-10043521-200x300.jpg" width="200" height="300" /></a></h2> <p>The Heritage Foundation recently published an article on how climate regulations designed to put an end to coal fired electric plants will significantly harm U.S. manufacturing (<a href="http://www.heritage.org/research/reports/2014/03/epas-climate-regulations-will-harm-american-manufacturing">EPA's Climate Regulations Will Harm American Manufacturing</a>). This got me thinking, if EPA regulations drive manufacturing offshore, is it possible that by increasing environmental regulation in the U.S. and driving manufacturing to regions where little environmental regulation exists, is the EPA making global pollution worse overall?</p> <p>Another way to think about this is: Is there a regulatory "sweet spot" that is more likely to keep manufacturing in the U.S. while reducing overall global pollution? After all, pollution in China, for example, ultimately impacts the U.S.  (see <a href="http://www.nytimes.com/2014/01/21/world/asia/china-also-exports-pollution-to-western-us-study-finds.html?_r=0">here</a>).</p> <p>The short answer to the question is "maybe". In theory this would appear to be true, however, finding publicly available year-over-year raw

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Is China The Biggest Malinvestment Case Of All Time?

<h2>On malinvestment from Seeking Alpha:<a href="http://www.professorhollybell.com/wp-content/uploads/2012/09/ID-10061289.jpg"><img class="alignleft size-medium wp-image-1954" title="ID-10061289" src="http://www.professorhollybell.com/wp-content/uploads/2012/09/ID-10061289-300x225.jpg" alt="" width="300" height="225" /></a></h2> "<b>Malinvestment</b> is one of the most useful concepts in Austrian economics. As Wikipedia puts it, <u>malinvestment</u> refers to <em>"investments of firms being badly allocated due to what they assert to be an artificially low cost of credit and an unsustainable increase in money supply, often blamed on a central bank."</em> Here is a typical chain of events (as laid out by yours truly): <em>1) Stimulative monetary policy creates falsely optimistic market signals.</em> <em>2) Private investment firms act aggressively on these false signals.</em> <em>3) As a result, the private sector "malinvests," i.e. allocates badly.</em> <em>4) Capacity is increased prematurely, supply ramped up excessively, etc.</em> <em>5) When the stimulus wears off, the economy is in worse shape than before.</em> <em>6) Overhang of excess debt, capacity, supply etc. serves as a dead weight.</em> <em>7) Struggling to ignite growth, the authorities order more stimulus.</em> <em>8) A speculative bubble ignites instead, furthering

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US-China Trade Disputes Include The Kitchen Sink

<div class="rpuEmbedCode"><!--rpuEmbedStart--> <script type="text/javascript" src="http://1.rp-api.com/rjs/repost-article.js?3"></script> <div class="rpuArticle rpuRepost-2fbb36c5c211411d32cfcdfd661f97f4-top rpuNoTitle" style="margin: 0; padding: 0;"><a class="rpuThumb" href="http://s.tt/18uNC"><img style="float: left; margin-right: 10px;" src="http://img.1.rp-api.com/thumb/1355497" alt="" /></a> <a class="rpuTitle" href="http://s.tt/18uNC"><strong>US-China trade disputes likely to rage on</strong></a> (via <a class="rpuHost" href="http://s.tt/18uNC">AFP</a>) <p class="rpuSnip">The recent bumper consignment of US-China <i>trade</i> disputes will be followed by boatload after boatload of new problems in coming years, experts predict, but that may be little cause for concern. The sheer range of products fought over by the world's two largest economies is imposing, and becoming more…</p> </div> <!-- put the "tease", "jump" or "more" break here --> <a href="http://www.professorhollybell.com/2012/03/30/us-china-trade-disputes-include-the-kitchen-sink/#more-1242" class="more-link"><span aria-label="Continue reading US-China Trade Disputes Include The Kitchen Sink">(more…)</span></a></div>

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US Creates New Trade Unit

<div class="rpuEmbedCode"><!--rpuEmbedStart--> <script type="text/javascript" src="http://1.rp-api.com/rjs/repost-article.js?3"></script> <div class="rpuArticle rpuRepost-dbac81d051ba326772bfd0a13d82e26c-top rpuNoTitle" style="margin: 0; padding: 0;"><a rel="nofollow" class="rpuThumb" href="http://s.tt/15T4i"><img style="float: left; margin-right: 10px;" src="http://img.1.rp-api.com/thumb/862795" alt="trade"/></a> <a rel="nofollow" class="rpuTitle" href="http://s.tt/15T4i"><strong>US creates new trade unit, targets China</strong></a> (via <a rel="nofollow" class="rpuHost" href="http://s.tt/15T4i">AFP</a>) <p class="rpuSnip">The US took direct aim at China Tuesday with the establishment of a new agency to crack down on what Washington judges unfair practices by its major <i>trade</i> partners. President Barack Obama ordered the creation of the Interagency <u>Trade</u> Enforcement Center charged with "robust monitoring and enforcement…</p> </div> <!-- put the "tease", "jump" or "more" break here --> <a href="http://www.professorhollybell.com/2012/02/29/us-creates-new-trade-unit/#more-1047" class="more-link"><span aria-label="Continue reading US Creates New Trade Unit">(more…)</span></a></div>

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Europe crisis could halve China’s growth: IMF

<h2>Is China Vulnerable?</h2> [repostus hash=d1a231dfac5956ecc958661b8854a8c4 title=Europe%20crisis%20could%20halve%20China's%20growth%3A%20IMF host=AFP short=15ztw] <h3>Will the <a title="Manufacturing: America’s Next Industrial Evolution?" href="http://www.professorhollybell.com/2012/02/06/manufacturing-americas-next-industrial-evolution/">U.S. Manufacturing sector</a> be better able to compete with China?</h3>

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The Economic and Geo-Political Implications of China-Centric Globalization

<a href="http://www.professorhollybell.com/wp-content/uploads/2012/02/669501h16rcliy1.jpg"><img class="alignleft size-medium wp-image-678" title="669501h16rcliy1" src="http://www.professorhollybell.com/wp-content/uploads/2012/02/669501h16rcliy1-300x300.jpg" alt="" width="300" height="300" /></a>A slightly different perspective on an article I published last week entitled: <a title="Manufacturing: America’s Next Industrial Evolution?" href="http://www.professorhollybell.com/2012/02/06/manufacturing-americas-next-industrial-evolution/">Manufacturing: America's Next Industrial Evolution?</a> <h3>On globalization from Thomas Palley:</h3> [repostus hash=7d37db8850fe1a81c1fad8413e47bc43 title=The%20Economic%20and%20Geo-Political%20Implications%20of%20China-Centric%20Globalization host=American%20Think%20Tank short=15BAf] <h3><em>Image courtesy of Stuart Miles</em></h3>

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Guest Article: Keystone Pipeline Denial Drives Canada to China

<div class="rpuEmbedCode"><!--rpuEmbedStart--><script type="text/javascript" src="http://1.rp-api.com/rjs/repost-article.js?2"></script> <div class="rpuArticle rpuRepost-40f017a5489e830221ee5e16882e8d9c-top" style="margin: 0pt; padding: 0pt;"><a rel="nofollow" class="rpuTitle" href="http://s.tt/15yx1">Canada PM Harper goes to <b>China</b> to boost trade</a> (via <a rel="nofollow" class="rpuHost" href="http://s.tt/15yx1">AFP</a>)</div> <div class="rpuKeywords" style="display: none;"><i>China</i>,human rights,Canada,human rights abuses,United States,market,MacDougall,Asia-Pacific region,economic ties,prime minister,Minister Stephen Harper,Ottawa,spokesman andrew macdougall,bilateral economic ties,ongoing human rights,prime minister heads,landlocked oil sands,Chinese Premier Wen,Chinese President Hu,crude oil pipeline,Many human rights,Keystone XL pipeline,professor errol mendes,Canadian,Alberta tar sands,<u>China</u> Institute,second-largest merchandise trading,Bilateral merchandise trade,foreign investment protection,Beijing,new trade offices,trip,Canadian oil,westernmost canada,Zhang Junsai,wife laureen,Chinese market,economic prosperity,oil sales,great importance,Chinese fugitives,Washington,ports,Ottawa economy,eventual shipping,Canadian resources,official visit,economic issues,giant pandas,Chinese demand</div> <div class="rpuArticle rpuRepostMain rpuRepost-40f017a5489e830221ee5e16882e8d9c-bottom" style="display: none;"></div>   </div>

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Manufacturing: America’s Next Industrial Evolution?

<h2><a href="http://www.professorhollybell.com/wp-content/uploads/2012/02/48518xmfkh8t0gp.jpg"><img class="alignright size-medium wp-image-579" title="48518xmfkh8t0gp" src="http://www.professorhollybell.com/wp-content/uploads/2012/02/48518xmfkh8t0gp-199x300.jpg" alt="manufacturing"width="199" height="300" /></a></h2> By Holly A. Bell While I understand and accept the arguments for why globalization is a positive thing—higher wages and a growing global middle-class, lower cost of goods, and more goods available through specialization and trade (just to name a few)—an increasingly globalized <u>manufacturing</u> sector gives me cause for concern about competitive advantage in the United States. <h2>Should manufacturing be the next era in our industrial evolution?</h2> Readers of this blog recognize I am a free-trade capitalist who believes in competition, but like most people who identify themselves as such, I’m not a cold-hearted snake. I recently read an excellent, yet disturbing, <a rel="nofollow" href="http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?pagewanted=7&_r=1" target="_blank">New York Times article</a> that discusses why Apple is so pleased with their decision to move manufacturing from the United States to China. Their reasons? Here’s a hint, they didn’t mention the cost of labor as you might expect,

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