Preservation Of The Environment

In recent years society has become increasingly concerned with maintaining and improving the quality of environment. Thus, public interest and concern with pollution problems is now high. This is reflected in recent federal and state efforts to formulate new legislation to prevent pollution and strengthen existing pollution laws. In reviewing literature pertaining to pollution problems, it is possible to distinguish many common elements. The most outstanding of these is the failure of the market to guarantee that private firms responding to price signals generated in the marketplace will make decisions leading to optimal resource use. Cases of market failure in allocating natural resources according to the wants of society frequently are due to the presence of technical externalities, or side-use effects.59 These roughly and generally can be defined as interdependencies among production and consumption units, the impacts of which are exerted other than through the market. They are, in other words, extra-market relationships. The economic unit generating external effects does not take them into account in decision-making. Thus, the tendency is for the unit to produce either more than society desires or not enough. In such cases society often has intervened in the decision-making process. This intervention frequently has taken the form of legislation to regulate production and consumption activities. Thus, a body of institutions, which acts as a constraint in decision-making processes, has materialized. These institutions are often far more influential in their effect upon resource use than are the forces of supply and demand acting in the marketplace. The problem of environmental pollution is essentially the problem of handling residuals which are the byproduct of all production and consumption activities which take place in the economy.2 These residuals are emitted into the air and water and disposed of on the land. They are interrelated, in that efforts to control emissions into the air or water can result in the production of solid wastes, which then present disposal problems. It is convenient to separate residuals by the type of pollution they cause-air, water, and land while remembering that these problems are related and that solutions may require coordinated effort.1 Residuals may be produced in both production processes and consumption. Residuals produced in production by the mineral industry, or firms utilizing its products, range from emission of sulfur dioxide by steam generating plants to radioactive mill tailings produced in the course of mining uranium.. Residuals associated with consumption are generated mainly through transportation of members of the household, space heating, and in the disposal of solid wastes, including refuse and junk autos. Residuals associated with both production and consumption receive attention in ensuing sections of this chapter.