Volume No. 3 Issue No.: 4 Page No.: 1280-1288 April-June 2009




Valsson Varghese*1 and N.S. Raman2

1. KDK College of Engineering, Nagpur, (INDIA)
2. NEERI, Nagpur, (INDIA)


Received on : January 20, 2009




Both at micro macro level there is general problem of how to value environmental control costs. The cost of environmental control is the value of the alternatives foregone through the operation of control. The costs of any economic function may have both macro and micro significance, yet micro inferences in particular drawn from existing estimates may be misleading and ambiguous and should be subjected to strong caveats. So at macro level impact of cost of control can not be gauged accurately and at micro level individual plant situation may offset long-term adverse effects. Other than conceptual problems of estimation there are, potentially, even more significant problems when it comes to interpretation. This is why environmental lobby and the industrial polluter lobby tries to take advantage, because of this weakness of proper estimation and interpretation.
An effort has been made in this paper to explain that expenditure incurred on pollution is not unproductive also as it helps in making environment clean comparable to those goods which have command on market price. And environmental control costs cannot be considered as sole or major reason for bankruptcy when it is compared to present expenditure trend in most industries, of course if some firm having a little margin then it can blame trading halt due to tightening of environmental regulations. Infact with a little care this additional costs of control may easily be nullified by increased efficiency, recycling. With a little concentration and careful observation, it can be brought out that some of most heavily impacted industries are those having combination of old plant and new plant, as there will be large variation in the type of control and user needs. Even factors like operator skill have had significant effects in leading to highly variable costs it is pertinent to note here that sometimes, expenditure in pollution control might have caused bankruptcy, reduced corporate growth, higher prices, reduced employment etc. But even this cost of control may be reduced with optimum level of control in case pollutant is relatively harmless.


Keywords : Economics, Environmental pollution, Environmental control.