Air and Water Pollution Regulation: Accomplishments and Economic Consequences

By Martin Freedman; Bikki Jaggi | Go to book overview

through pollution abatement legislation, should also be welcome. As a result of modernization, the pulp and paper firms will thrive in an increasingly competitive world economy; with regard to their 1986 economic performance, Paul remarked, "New products, greater energy efficiency, a heavy investment in new plant and equipment and more moderate wage increases all have helped the industry outperform not just other heavy U.S. industries, but also the economy as a whole."11 The analyses contained in chapter 6 have demonstrated in addition to better economic performance, as remarked by Paul, the firms were able to reduce pollution emission dramatically over the 1978-86 period. However, despite excellent achievements in reducing pollution, we have not yet reached our goal of clean environment. A great deal more still needs to be done, considering the fact that BOD was still being measured at 392,973 pounds per day for these firms for 1986. To put this in perspective, this is equivalent to raw waste for one million people being emitted into the waterways daily. TSS was still being discharged in massive quantities into the wastewater by pulp and paper mills during this period. Pulp and paper mills in 1986 were a long way from achieving the 1973 Federal Water Pollution Act Amendments goal of no pollution discharged into the nation's waterways. As presented in this chapter, pulp and paper firms are able to reduce pollution and still remain economically viable. They have survived well since the passage of the major environmental legislations, and can still improve their economic performance through modernization while reducing pollution to the desired level.


NOTES
1.
G. B. Christainsen, F. Gollop and R. Haveman, Environmental and Health- Safety Regulations, Productivity, Growth and Economic Performance, Joint Economic Committee, 96th Congress, 2nd Sess. ( Washington, D.C.: U.S. Government Printing Office, 1980).
2.
H. H. Bragdon and J. T. Marlin, "Is Pollution Profitable?" Risk Management, April 1972, 9-18.
3.
B. H. Spicer, "Investors, Corporate Social Performance and Information Disclosure: An Empirical Study," Accounting Review January 1978, pp. 94-111.
4.
E. H. Bowman, "Corporate Social Responsibility and the Investor," Journal of Contemporary Business (Winter 1973): 21-43.
5.
Dennison Edward F., Accounting for Slower Economic Growth: The United States in the 1970's ( Washington, D.C.: Brookings Institute, 1979).
6.
J. G. Meyers and L. Nakamura, "Energy and Pollution Effects on Productivity: A Putty-Clay Approach," in New Developments in Productivity Measurement and Analysis, ed. John W. Kendrick ( Chicago, IL.: University of Chicago Press, published for the National Bureau of Economic Research, 1980).
7.
A. J. Barbera and V. D. McConnell, "Effects of Pollution Control on Industry Productivity: A Factor Demand Approach," Journal of Industrial Economics ( December 1986): vol. xxxv161-172.

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