WHAT DOES A CLEAN ENVIRONMENT COST

Abstract

This paper is concerned with impact of environmental objectives on society's economics. Results of computer-based economic modeling studies are presented and evaluated. It is demonstrated that - with equilibrium conditions established for 1985 - strict industrial waste discharge standards almost double the forecast price of NG (81 cents to 1. 55 per million Btu's). This large increase in NG price results primarily from incentive to substitute clean fuel for investment and use of air emission control equipment, primarily in electric power generation. Production costs for the eight industries increased 30. 8 percent with strict effluent standards. Water consumption increases 288 percent and so..