A Mineral Economics Approach To Environmental Control

The greatest difficulty in choosing solutions to environmental problems ill a free market economy (such as ours) stems from two factors: adverse effects of pollution are largely external to the producer, and expenditures made that improve the environment result in benefits that are free to all, These two factors are sufficient to explain why the solution to many environmental problems is to be found in public action. Such action is most likely to be economic- ally efficient if it can be carried out so that industry retains the freedom to make decisions based on the free market. Two examples-a zoned discharge fee and innovation of recycling systems-illustrate the type of changes in the mineral industry that would lead to an improved environment. The first requires that ownership of the relevant public resources be vested in control agencies. The second indicates that profit opportunities existing in solid waste recycling should facilitate innovation. Both concepts can reduce environmental loadings but will require imaginative thought from persons in the mineral industries.