It has been argued that gross domestic product ignores the environment and therefore policymakers need a revised model that incorporates green accounting.
Julian Lincoln Simon, a professor of business administration at the University of Maryland and a Senior Fellow at the Cato Institute, argued that use of natural resources results in greater wealth, as evidenced by the falling prices over time of virtually all nonrenewable resources.
[2] For instance, between 1973 and 1982, the United States imposed stricter regulations on pollution, which led to a 0.09% decrease per year in the national output growth.
[9] Other researchers argue that those number is insignificant compared to protecting and sustaining the priceless environment.
[2] During the time of globalization and the rapid expansion of the international market, the US policymakers have come to realize the importance of what is happening in other countries.
Before making any decision and submitting the final draft to Congress, the policymakers were concerned about the effects of the North American Free Trade Agreement on the environment.
Trade restrictions have not been used when a country's production and processing methods result in excessive discharges of pollutants (carbon, sulfur, nitrogen oxides, chlorofluorocarbons) across national boundaries.