"The lawsuit, filed by the state Department of Environmental Protection, accuses U.S. EPA of overstepping its authority and asks the U.S. District Court for the Southern District of West Virginia to throw out the federal agency's new guidelines for issuing Clean Water Act permits for coal mines."
This raises several interesting questions, which do not have clear answers. According to Stigler, firms use the government to craft regulation in their favor. So then, who benefits from these regulations on the coal industry (Environmental groups, the renewable energy industry, local fisheries, etc.)? Could it be that these regulations are actually in the public interest as it is almost always claimed? Or rather is the inefficiency created by this regulation a type of "rent" that firms are seeking to capture for their own benefit?
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