Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Cutting the Cost of Environmental Policy: Lessons from Business Response to CFC Regulation

Daniel J. Dudek, Alice M. LeBlanc and Kenneth Sewall
Ambio
Vol. 19, No. 6/7, CFCs and Stratospheric Ozone (Oct., 1990), pp. 324-328
Published by: Springer on behalf of Royal Swedish Academy of Sciences
Stable URL: http://www.jstor.org/stable/4313727
Page Count: 5
  • Download ($43.95)
  • Cite this Item
Cutting the Cost of Environmental Policy: Lessons from Business Response to CFC Regulation
Preview not available

Abstract

Implementation of the Montreal Protocol is underway. In the United States, the directive from the Environmental Protection Agency allows the CFC industry flexibility in the way quotas are met. Prices of CFCs have increased. Business response has been positive including work on the development of substitute chemicals, substitute products and recycling technologies. The paper examines the history of CFC regulation in the European Economic Community and the United States in order to derive lessons from business response to alternate types of policy and to apply these lessons to other environmental problems. Policies in the EEC and the US prior to the Montreal Protocol included a production cap in the EEC and a ban on aerosol use of CFCs in the US. These policies were ineffective in reducing total production over time. The production cap in the EEC was set at a level that failed to constrain use. The ban in the US, although successful in forcing the development of substitutes for aerosols and in achieving a short-term reduction, did not discourage CFC growth for other uses. The conclusion is that policies must constrain use through the price mechanism and that policies allowing maximum flexibility and providing industry with economic incentives to benefit from pollution reduction will achieve the least cost and most innovative solutions.

Page Thumbnails

  • Thumbnail: Page 
324
    324
  • Thumbnail: Page 
325
    325
  • Thumbnail: Page 
326
    326
  • Thumbnail: Page 
327
    327
  • Thumbnail: Page 
328
    328