The Costs of Pollution
Animated by the contrast of rising prosperity and declining environmental quality in the 1960s, the modern environmental movement pushed local and state authorities and then the federal government to take responsibility for restoring and safeguarding the environment. Central to that expanded federal role was the establishment of science-based national air quality standards in the Clean Air Act of 1970. Economists too came to focus on pollution as a key threat to public welfare and laid the groundwork in the 1960s for what would become a politically compelling monetization of the costs of air pollution and environmental degradation. But whereas environmentalists tended to describe clean air as a natural right, to be secured regardless of the cost, economists approached clean air as a natural resource, to be managed for its measurable contributions to a monetized notion of public welfare.