Effects of Pollution Control on the Firm.

by Dennis P. Tihansky


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Legal constraints on waste emissions have forced American industries to more than double their outlays for abatement facilities over the past five years. More stringent future regulations will require even higher expenditures. These constraints are usually viewed as financially detrimental to industry. Though a company actually receives many advantages from waste control programs, these benefits are seldom evaluated. For example, cleaner working conditions are likely to improve worker morale and efficiency. Better waste control will reduce the probability of production slowdowns or plant shutdowns due to clogged ductwork and equipment. Other benefits include lower expenditures for treating intake water and air, less emphasis on the maintenance and repair of polluted plant facilities or grounds, increased revenue from sale of byproducts, more efficient manufacturing operations due to reuse of byproducts, and better public relations. The effects of pollution control on a typical firm are thus two-sided. 13 pp. Ref.

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