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The environmental regulations has the potential consequences of regulation for economic growth and productivity on the pollution intensive industries. “Pollution-intensive industries are restricted by replacement cost of machinery and equipment”, so environmental technology is relatively fixed, which can only accept tax penalties. When environmental regulation intensity is high, enterprises are taxed at higher cost. “There is a trade-off between increasing environmental resources consumption and reducing the environment resources consumption.” (Lu).  The cost is relatively high in pollution-intensive industries, due to the large capital input, the complexity of technology, and the specificity of equipment. It is difficult to update technology for pollution-intensive industries when environmental regulation intensity increases. Pollution-intensive industries may increase production factors input to offset environmental regulation cost, which will cause an interference in the profit maximization of resource distribution. Therefore the industries would need to do adjustment on large scale which may impact their economic growth. According to econometric-based studies, relatively mid or small  effect on sector-specific productivity and employment, though firms were less likely to open plants in locations subject to more stringent regulation in U.S. locations. Studies that used economy-wide models also showed” to explicitly account for sectoral linkages and intertemporal effects found substantial sector-specific effects due to environmental regulation, including in sectors that were not directly regulated.”(Tong). The  industries need to increase the research input of environmental technology to decrease the tax burden of environmental tax. The regulation made to go green have an adverse effect on industries as they have to first think of a way to cope with environmental tax then their production will have consecutively increase. The regulation should be based of the cost benefits and the environment friendly not only about the environment. While environmental regulations reduce emissions of harmful pollutants, thus generating health and other benefits for the American public, they also raise a plant’s production costs because they require installation and operation of pollution controls or changes in production processes that would otherwise not be undertaken. In the early 1970s, as the U.S. began to implement the Clean Air and Clean Water Acts, there was limited information available on how environmental regulation might impact the economy.(Haveman). From the beginning it also has been recognized that the potential negative effects on overall economic growth, productivity, and employment, as well as on specific industries should be considered alongside the positive consequences of improving environmental quality. In part, this balanced approach was likely motivated by the significant slowdown in U.S. productivity growth, uptick in inflation, and, doubling of the unemployment rate that coincided with the expansion of federal oversight into areas such as environmental quality. Profits will decline for some firms in most of the industries because firms will not be able to pass on the full cost of pollution abatement to consumers in the form of higher price. Thus affecting the overall industrial profit.The tourism industry is the third largest retail industry in the U.S. The environmental laws and regulation has impact on tourism. The tourism industry loses close to $1 billion each year, mostly through losses in fishing and boating activities, as a result of water bodies that have been affected by nutrient pollution and harmful algal blooms. (Xie). Pollution has diverse and far-reaching effects on the U.S. economy, impacting tourism, property values, commercial fishing, recreational businesses and many other sectors that depend on clean water.Development and management of tourism in a way that can be compatible with the environment and not damage it, is an important factor in achieving sustainable development.Pollution has diverse and far-reaching effects on the U.S. economy, impacting tourism, property values, commercial fishing, recreational businesses and many other sectors that depend on clean water.Development and management of tourism in a way that can be compatible with the environment and not damage it, is an important factor in achieving sustainable development. According to Dr.Dave,the tourism crisis is the impacts that adding 800 million additional   international visitors per year to the tourism industry, not to mention the increase of tourism visits that may take place within national borders. Adding 800 million visitors a year is the equivalent of adding 8 or 9 Walt Disney Worlds to the tourism industry. The regulations has been recognized that the potential negative effects on overall economic growth, productivity, and employment in the tourism industry.The fragmented nature of the industry is not conducive to regulation that encompasses all aspects of the industry. Therefore, educational efforts aimed at supporting existing regulations and encouraging environmentally responsible behavior where no regulations exist seem most promising as a management scheme. The laws and regulation should be made in compliance of the economic and social benefit accounted together.

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