Question

Environmental-protection laws are good for the economy because they do what

Answer 1

Laws addressing environmental concerns can have a positive impact on the economy of a state or nation, when new regulations are put in place businesses are forced into creating new sustainable, greener options creating a new sector of business. These new technologies not only grow the economy by creating jobs, they also provide a new product growing the economy into new markets. 

Answer 2

The correct answer is: "they generate positive externalities and ensure sustainability".

A positive externality is a benefitial effect for a third party which arises from an economic transactions. For example, if environmental protection laws are enacted and business are binded by them, their economic activity with be respectful with other members of the society and provide social welfare.

Moreover, such regulations permit the development of a sustainable economic model, which worries for keeping the environment in a healthy balance.