Environmental Protection: Can We Afford It

In the past two decades, annual U.S. expenditures for pollution control have increased dramatically. The trend is for even greater private and governmental expenditures as emphasis shifts from domestic to global environmental protection concerns. Intensive Congressional oversight coupled with elaborate governmental regulations and policies are making it difficult for businesses (and governmental entities) to meet strict environmental standards-- compliance cost and environmental liability are becoming pivotal to business decisions. Our economic stability is weakening as businesses close down, cut back, or relocate. This paper looks at how much the U.S. is spending on environmental protection and considers the benefits derived from the dollars invested, discusses some of the impacts resulting from strict environmental regulation, and offers some options to alleviate the negative consequences of current U.S. environmental policies.