For instance, It's true that new regulations have expedited the retirement of some of America's older and least efficient coal plants, but requirements to retrofit smokestacks with scrubbers also creates jobs.

And as cleaner burning natural gas overtakes coal in meeting America's energy needs — something that's happening not because of regulations, but because natural gas prices have become more competitive with coal costs — some of those coal jobs shift to other parts of the energy industry.

The benefits are not limited to the energy sector. In the construction and building materials industries, efficiency requirements create demand for new products that allow building owners to meet those higher standards. Green business formation also creates new administrative jobs.

As Morgenstern puts it in his study: "An individual separated from an existing job because of an environmental regulation has clearly suffered a loss. Yet, pollution abatement activities themselves require labor input. Thus, environmental regulations may also create jobs — sometimes in the same industry, or even in the same firm."