The most perplexing issue relating to the evaluation of pollution perfor-
mance is to develop appropriate tools and techniques to measure the firm's
pollution performance. It is important that the measurement techniques are
suitable to the nature of pollution data and capable of providing reliable
information on the firm's pollution abatement activities.

First we will discuss the measurement techniques utilized by earlier stud-
ies. Thereafter, we will explain the measurement techniques used in the study
on which this book is based. We will also briefly present the pollution prob-
lem in the pulp and paper firms as well as in electric utilities and identify
important pollutants for which the measurement techniques are being devel-
oped.

The existing major studies dealing with the measurement of pollution in-
formation have been conducted under the auspices of the Council on Eco-
nomic Priorities (CEP). These studies have covered firms from the following
four industries: pulp and paper, steel, electric utilities, and oil refining. We
will evaluate the measurement methodology used by the first three studies.
The oil refining industry is not being covered in this book. Therefore, the
CEP study for oil refining firms will not be included in the review of meth-
odology used by the existing studies.

The main purpose of the study on pollution in the pulp and paper indus-
try conducted by Allen, Kaufman and Underwood "was to ascertain what
the 24 leading producers of pulp and paper in the United States had actually

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