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Put the Profit Motive to Work

As the prosperity of the postwar period ran aground on the shoals of the dislocations of the energy crises and the deteriorating position of American manufacturing, critiques of the supposed inefficiency of large government programs gained ground among both Democrats and Republicans. Under Jimmy Carter, the Environmental Protection Agency (EPA), which had been a champion of a liberal governance model in which experts established direct mandates for businesses to follow, became a key space for the development of market-based alternatives that shifted power back to businesses in the hopes of reducing the costs of achieving public welfare goals, even as the agency took on new authority to protect pristine air through the Clean Air Act Amendments of 1977. As Carter set out to bring more economic scrutiny to the EPA’s rulemaking through expanded regulatory review processes, environmental advocates were forced to contend with the rising salience of monetary approaches of environmental value.