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How to do an economic analysis?

Isa24
Posts: 1
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7/10/2015 8:37:58 AM
Posted: 1 year ago
Hi Guys,

This is in regards to environmental economics policies.

I"m currently doing this internship and the tasks have been very interesting so far and challenging. I could use someone"s input on this topic though.

I"m being asked to do a general analysis of what the impact of a new policy (packaging policy) will be on competitiveness of companies in the Refrigeration and Air-conditioning sector.
I have to look at the Economic impact in general ( on companies as well the country) with an emphasis on competitiveness. I also have to look at the positive, negative and maybe even neutral impacts.

Do you guys have any recommendation as to how to go about researching this and doing a proper analysis?

I"ve started gathering info on the general economic impact of any new environmental policy/regulations on competition. Just general information. Do you guys have any suggestions as to the type of info I should use from the policy document, in order to be more specific in my economic analysis? Also what specific info I should be researching for the analysis?

Thanks in advance for your guidance!
)
ax123man
Posts: 317
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7/10/2015 10:24:30 AM
Posted: 1 year ago
At 7/10/2015 8:37:58 AM, Isa24 wrote:
Hi Guys,

This is in regards to environmental economics policies.

I"m currently doing this internship and the tasks have been very interesting so far and challenging. I could use someone"s input on this topic though.

I"m being asked to do a general analysis of what the impact of a new policy (packaging policy) will be on competitiveness of companies in the Refrigeration and Air-conditioning sector.
I have to look at the Economic impact in general ( on companies as well the country) with an emphasis on competitiveness. I also have to look at the positive, negative and maybe even neutral impacts.

Do you guys have any recommendation as to how to go about researching this and doing a proper analysis?

I"ve started gathering info on the general economic impact of any new environmental policy/regulations on competition. Just general information. Do you guys have any suggestions as to the type of info I should use from the policy document, in order to be more specific in my economic analysis? Also what specific info I should be researching for the analysis?

Thanks in advance for your guidance!
)

This is a rabbit hole - how deep do you want to go?

On the surface, the answer is simple. Any policy change that impacts a business will hurt the bottom line. This should be obvious - what are the odds of regulators going to a business and recommending a packaging change and the business saying "Wow, great idea! I ever thought of that!".

You didn't state what the goal of the packaging change would be. I can only assume its related to environmental concerns, so this leads the discussion to issues of negative externalities. Research that and your led to issues of private property. Keep going: you can learn about the fact that early on in the industrial revolution, property owners harmed by businesses had quite a lot of power to sue businesses and get injunctions against harms. However, policy changes favorable to businesses put an end to that - all in the name of the "greater good", you know. Now, the politicians (who caused the problem) want to "fix it" with more policy changes, but instead of reversing the afformentioned legal changes, giving property owners back their property rights, they will add on more policy changes to "fix it" again.

The other factor to consider is that, historically, policy changes are favorable to large, entrenched businesses and generally harm small & startup businesses. The reason should be obvious: first of all it's the existing large businesses who spend all the money on lobbying. In fact, in many cases such policies are written by the businesses who are impacted by it. Hmmm, wonder how that will turn out ;). The other reason is that large businesses can absorb the cost of a regulation while smaller businesses are hurt. So, the general impact is a reduction of competition, whose result is always and everywhere reduced quality and higher prices.