Regulatory federalism and environmental protection in the United States

In this paper we address two aspects of regulatory federalism in U.S. envir onmental policy: First, we suggest that environmental quality in U.S. state s responds positively to increases in income. Second, we provide evidence t hat environmental quality did not decline when President Reagan's policy of new federalism returned responsibility for many environmental regulations to the states. Thus, state environmental quality appears to reflect more th an just the dictates of federal policy Additionally, we find that a "race t o the bottom" in environmental quality did not materialize in the 1980s.