Environmental pollution market failure

Despite the attractions of economic forces driving environmental protection, some cautions and failures have been noted. Firstly, the export of hazardous waste to countries where costs for treatment are lower enhances environmental risks during transport and has the potential for transboundary export in the event of pollution. At the same time, the loss of raw material may deprive the home market of an adequate supply of feedstock for the home-based industry. Secondly, there is considerable scepticism that self-regulation of TBT-based antifoulants could be achieved in a timely manner by the shipping industry. This is an instance where the cost benehts to one industry are born by another commercial sector, notably aquaculture. Thus, protection of the marine environment is likely to be aided by economic factors but the role of government, via taxation and standard setting, is not likely to be usurped. Public education and, in turn, pressure, can promote and support corporate environmentalism. 

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