Impact of Environmental Regulations on Business

It is a known factor that we are all concerned with the environment and its protection. But how far can the government regulations take the enforcement? In many cases the way the government enforces their regulations is to have impact fees and other fines for non compliance. So in the business defense, how are they supposed to maintain a competitive market and also gain profit when their external and internal environmental protection policies cost keep going up. I found an article that said that more than 60% of all businesses being affected by the regulations feel that they are excesive and unacceptable. Many businesses find it easier to go out of business instead of accepting the costs that would have to be paid in order to stay in business. So in the long run yes we are protecting the environment, and yes it is the individual business's responsibility to protect the environment. But a line should be drawn in the amount it costs and the extent they are willing to take it. Or a lot more than just the environment will be hurt, including the economy and our individual bang for our own buck after prices go up to cover these costs. Regulation

1 comment:

Dr. Tufte said...

-1 on Liz's post for multipe errors.

It isn't enough to say that a regulatory cost is excessive. You've got to provide a metric to define excessive. Economics has done that with marginal analysis.