Business Ethics and Corporate Governance, Second Edition

COSTS AND BENEFITS OF ENVIRONMENTAL REGULATION

Environmental regulations are often criticized as being too costly for business. Certainly, protecting environmental quality is an expensive task for many regulated industries. Beyond higher costs for individual firms, however, many people argue that the high level of environmental regulation hurts a country’s competitiveness in the world market. Some economists have countered that strict environmental regulation may actually serve to enhance a country’s competitiveness. It is evident that forward-thinking firms can turn environmental regulations to their advantage. They argue that clean business practices are more efficient, and therefore, profitable. It is also important to realize that not all ...