Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Getting Infrastructure Built: The Law and Economics of Permitting
Journal of Economic Perspectives
vol. 39,
no. 1, Winter 2025
(pp. 151–80)
(Complimentary)
Abstract
Given the benefits to economic growth and economic mobility, and the need to transition to green energy, getting infrastructure built is an urgent issue. I first review the evidence on the costs and benefits of the current regime of government approvals for such building: in the US, permitting is slow, infrastructure is expensive, and environmental outcomes are not particularly good. I propose a framework for reform with two dimensions: the power of the executive branch to decide and its capacity to plan. After considering reform possibilities, I propose that reforming both dimensions could lead to a possible "green bargain" that benefits efficiency, the environment, and democracy.Citation
Liscow, Zachary. 2025. "Getting Infrastructure Built: The Law and Economics of Permitting." Journal of Economic Perspectives 39 (1): 151–80. DOI: 10.1257/jep.20221347Additional Materials
JEL Classification
- D61 Allocative Efficiency; Cost-Benefit Analysis
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H54 National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
- H76 State and Local Government: Other Expenditure Categories
- Q58 Environmental Economics: Government Policy
- R53 Public Facility Location Analysis; Public Investment and Capital Stock