A case study on economic tools needed by companies to make decisions about funding pollution prevention projects

Introduction3

Discussion5

Background Study5

Environmental Management System (EMS)6

Total Cost Assessment7

Summary of Case Study 17

Summary of Case Study 28

Methodology9

Results9

Recommendation10

References11

A case study on economic tools needed by companies to make decisions about funding pollution prevention projects

Introduction

The case study on Total Cost Assessment is the major objective for this research paper to apply economic tools on pollution prevention projects of companies. It is used as a competitive tool for decision-making for the assessment of cost and benefits of all instruments in metal finishing industry. It helps in order to compare all the related cost and benefits between process changes and alternative investments as a part of capital budgeting method. TCA includes intangible and indirect costs for an absolute sight of the possible environmental effects of any particular modification (Causing et al., 1996). It explains the scope of environmental costs to expand under this area. This research paper highlights key findings of the case study on the metal finishing industry (AWRA, 2012). TCA is also used for the analysis of investment in pollution prevention projects. The purpose of this research paper is to compare economic tools for making corporate decisions about funding pollution prevention projects (Tullos, 2009).

This research paper will discuss analysis of economic tools for pollution prevention projects. It also addresses problems and issues related to these two subjects and provide implementations and recommendations to counter these issues (AWRA, 2012). There are many industrial and commercial companies that formulate pollution prevention programs with objectives of reduction of cost and liabilities for enhancing compliance with federal and state regulation. There is category wise distribution for the as analysis of two different cases in metal finishing industry in comprehensive detail.

Discussion

Background Study

Metal finishing industry in the United States are encountering a stage of intense international and domestic competition as it emphasize on product quality to consistently enhance the efficiency of their operations. Metal finishers in the United States have gone through great development in the progress of environmental performance for last twenty five years. There are many progressive companies that are identifying the need to reduce the environmental impacts with compliance towards better regulations to reduce cost, improve public image, and stay competitive in the industry (AWRA, 2012).

Pollution Prevention Act has been passed in 1990 that is in counter to pollution due to industry wastes and other drainage of hazardous materials. This act enforces a law that states the elimination of pollution through effective usage of resources that includes water, energy, raw materials, and restoration of natural resources under pollution prevention projects.

Clean Water Act or Clean Air Act is other similar nature of laws that focuses towards pollution control ahead of prevention. It was completely as a result of industry practices and also exhibits environmental regulations and training of environmental regulation. The application of these laws at state and federal levels is on the basis of pollution control logic. Limits can be formulated on the amount of pollution to emit and a ...