Abstract :
Liquid effluents and other polluted materials such as gaseous emissions, solid wastes and land that is contaminated are all negative resources. The separation, treatment or disposal of the polluted material requires capital investment and continuous revenue expenditure but brings no financial gain. In the past, the least-cost route for industry was to allow pollutant materials to be discharged or emitted directly to the wider environment. In the absence of conclusive information on health or ecological issues, there was no incentive to prevent pollution. Now, however, the public expect that steps should be taken to avoid or control pollution. As a result, governments have agreed on certain environmental targets, legislation is in place that defines the standards necessary to achieve these standards and regulatory authorities are active in enforcing these standards. Here, the authors examine the economic ramifications of such legislation.
