Line | Among the myths taken as fact by the |
environmental managers of most corporations is | |
the belief that environmental regulations affect all | |
competitors in a given industry uniformly. In reality, | |
(5) | regulatory costs—and therefore compliance— |
fall unevenly, economically disadvantaging some | |
companies and benefiting others. For example, a | |
plant situated near a number of larger | |
noncompliant competitors is less likely to attract | |
(10) | the attention of local regulators than is an isolated |
plant, and less attention means lower costs. | |
Additionally, large plants can spread compliance | |
costs such as waste treatment across a larger | |
revenue base; on the other hand, some smaller | |
(15) | plants may not even be subject to certain |
provisions such as permit or reporting | |
requirements by virtue of their size. Finally, older | |
production technologies often continue to generate | |
toxic wastes that were not regulated when the | |
(20) | technology was first adopted. New regulations |
have imposed extensive compliance costs on | |
companies still using older industrial coal-fired | |
burners that generate high sulfur dioxide and | |
nitrogen oxide outputs, for example, whereas new | |
(25) | facilities generally avoid processes that would |
create such waste products. By realizing that they | |
have discretion and that not all industries are | |
affected equally by environmental regulation, | |
environmental managers can help their companies | |
(30) | to achieve a competitive edge by anticipating |
regulatory pressure and exploring all possibilities for | |
addressing how changing regulations will affect their | |
companies specifically. |
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