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Getting Infrastructure Built: The Law and Economics of Permitting

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  • Zachary Liscow

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.

Suggested Citation

  • Zachary Liscow, 2025. "Getting Infrastructure Built: The Law and Economics of Permitting," Journal of Economic Perspectives, American Economic Association, vol. 39(1), pages 151-180, Winter.
    • Handle: RePEc:aea:jecper:v:39:y:2025:i:1:p:151-80
    DOI: 10.1257/jep.20221347
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    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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