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Government regulation has proven necessary to achieve many green goals. Although the prospect of corporate profit may encourage the development of biofuel and other alternative fuel sources, or the sales of hybrid cars, there are many areas in need of green policies and regulations where a profit motive does not exist. The benefits of preventing water, soil, and air pollution; of conserving water; of protecting biodiversity; and of preventing deforestation, are analogous to the gains of pure research compared to applied research. Although applied research—such as creating tape that has more adhesive power, or more energy-efficient refrigerators—leads to a direct benefit to the researcher's employer, the benefits of research into the human genome or the origins of the solar system are either intangible or distributed throughout the populace without ownership.

Similarly, the benefits of keeping water clean are felt by all of society and the ecosystem as a whole, not just those who take the time and effort to do so. However, such benefits in both cases do lead to tangible benefits later—it was the pure research of physicists like Albert Einstein that made the applied research of the atomic bomb possible. Over the years, the private sector has greatly reduced its commitment to pure research, feeling that they were not gaining profit from it; the government, to protect the scientific interests of the country, had to step in and increase public-sector funding of such research. Government intervention is similarly required when market forces fail to provide protection for the environment.

In the United States, a variety of federal agencies are empowered to regulate and enforce the regulation of various issues regarding the environment. The most obvious and most visible is the U.S. Environmental Protection Agency (EPA), which was established in 1970 and is the principal body responsible for U.S. environmental policy. Though pesticides had been regulated in the past, the EPA provided the federal government with the structure to regulate all pollutants. Some of its powers are delegated to state and tribal governments, but the agency itself is large, with 17,000 employees at 10 regional offices, 27 laboratories, and various program offices, as well as the headquarters in Washington, D.C.

Energy Star

In 1992, the EPA began the voluntary Energy Star program, which sets standards of energy efficiency for a variety of products. The program has since been adopted by Canada, the European Union, Japan, Australia, and New Zealand. Although Energy Star specifications vary from product to product—including almost 50,000 products—in general, they call for a 20 percent to 30 percent improvement in energy efficiency compared with standard versions of the product. Energy Star products include lighting, computers and electronics, and major appliances, and the program Website maintains a list of “payback periods.” For instance, it takes three years for the savings resulting from energy efficiency to accrue enough for an Energy Star washing machine to “pay for itself.” The average life of a washing machine is of course much longer. The idea is to inform the public of the long-term personal gains of energy conservation, even when the initial cost is higher. Because Energy Star is voluntary, it has been spared much of the politicization of the agency; the program is effective only for so long as its “brand” represents real gains and meaningful levels of energy efficiency, and because of agency and industry efforts to preserve that truth, it has been a considerable success. In recent years, Energy Star standards have been extended to new homes, which can be made more energy efficient through tight construction and proper insulation, energy-efficient air conditioning and heating, and special windows and water heaters. As of 2008, more than 10 percent of new U.S. homes were Energy Star compliant, a promisingly high number. Separate ratings are used for commercial buildings, and specific standards have been developed for banks, courthouses, acute care hospitals, children's hospitals, hotels/motels, schools, offices, dormitories, retail stores, supermarkets, refrigerated warehouses, nonrefrigerated warehouses, municipal wastewater treatment plants, automobile assembly plants, cement plants, and corn refineries.

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