David Kuo's Blog

According to the environmental economics professor, Tim Haab, in this article, pollution is okay.

Of course, it does not necessarily mean for companies and society to accept pollution and stop caring about it. Instead, they should look towards the marginal benefits of the extra pollution, and the marginal costs. Basic economics: equation marginals will maximize. In this case, by equating the marginal cost and benefits of the extra pollution, society will be better off as a whole even if there is pollution. Sometimes, the benefits of the polluting activity outweigh the cost – and that’s when economists would say to engage in the polluting activity, thus benefit society as a whole overall.

This blog is informative and a great reminder that pollution will always exist, and polluting activities can sometimes be more beneficial to society. The problem is, how does one account for the costs of pollution? If the price needs to reflect the true cost, how much would the price be adjusted? Recently, I’ve learned about sustainability and social responsibility in business, and this topic walks on a fine line for businesses which makes this post a much more interesting read. On one hand, if a business can pollute but at the same time, be sustainable and socially responsible, society will benefit greatly. If not, it could pose huge environmental concerns and protests against said company.