256
Toxic Chemicals
also highlights which companies are nationally known to release toxic chemicals,
resulting in an unfavorable image of the products of these companies. Public disclosure leads to accountability to the public; that is, the public can identify the highest
emitters. This provides incentive for companies to reduce toxic chemical use to avoid
being among the top emitters. Publishing company successes of reduced releases of
toxic chemicals would also generate favorable publicity for the companies.
Similarly, if toxic chemical use or the concentrations of toxic chemicals in products are reported, there will be pressure to reduce. Successful reduction efforts would
generate favorable publicity.
TOXIC CHEMICAL USE FEE
There are several advantages for a toxic chemical use reduction program based on
toxic chemical use fees. First, the only economic reason for selecting a particular
chemical is the purchase price of the chemical. This does not include the downstream cost of the adverse health effects of the chemical use. By paying a fee for
use that is based on the effective toxicity of the chemical, the economic analysis
is then based on a better measure of the total cost of the chemical, and less costly
chemicals will be favored. Moreover, a fee approach will discourage the use of
chemicals for lower-value uses or uses for which there is a less-costly (purchase plus
toxic chemical use fee) alternative. This also allows continued high-value uses for
which there are no safer alternatives while paying for the downstream impacts. The
result is a free-market reduction in overall use of a chemical while preserving use
for higher-value uses, that is, those uses that are associated with high socioeconomic
benefits coupled with a current lack of a safer chemical.
Finally, a toxic chemical use fee would have the effect of reducing the overall
exposure of the chemicals used without the requirement to set individual limits.
A toxic chemical use fee is easier and more efficient to administer than a commandand-control type of regulatory program. Can you imagine the complexity of a regulatory agency determining what an acceptable level of use would be for each chemical,
for each process, for each company in the United States?
As the cost of toxic chemicals will be increased to include the total cost of using
the chemicals, there will be an economic incentive to develop lower-toxicity alternatives or processes that do not require the use of higher-toxicity chemicals.
Any toxic chemical use fee collection program should be revenue neutral, with
fees collected used for the following:
• Administration of the program
• Research on developing alternative chemicals and processes to reduce the
use of highly toxic chemicals
• Grants or low-interest loans for companies to implement process changes
needed to reduce or eliminate use of toxic chemicals
• Providing technical assistance to companies in evaluating or implementing
projects to reduce use of toxic chemicals
• Funding of medical programs aimed at those adversely impacted by toxic
chemical use
Toxic Chemicals
also highlights which companies are nationally known to release toxic chemicals,
resulting in an unfavorable image of the products of these companies. Public disclosure leads to accountability to the public; that is, the public can identify the highest
emitters. This provides incentive for companies to reduce toxic chemical use to avoid
being among the top emitters. Publishing company successes of reduced releases of
toxic chemicals would also generate favorable publicity for the companies.
Similarly, if toxic chemical use or the concentrations of toxic chemicals in products are reported, there will be pressure to reduce. Successful reduction efforts would
generate favorable publicity.
TOXIC CHEMICAL USE FEE
There are several advantages for a toxic chemical use reduction program based on
toxic chemical use fees. First, the only economic reason for selecting a particular
chemical is the purchase price of the chemical. This does not include the downstream cost of the adverse health effects of the chemical use. By paying a fee for
use that is based on the effective toxicity of the chemical, the economic analysis
is then based on a better measure of the total cost of the chemical, and less costly
chemicals will be favored. Moreover, a fee approach will discourage the use of
chemicals for lower-value uses or uses for which there is a less-costly (purchase plus
toxic chemical use fee) alternative. This also allows continued high-value uses for
which there are no safer alternatives while paying for the downstream impacts. The
result is a free-market reduction in overall use of a chemical while preserving use
for higher-value uses, that is, those uses that are associated with high socioeconomic
benefits coupled with a current lack of a safer chemical.
Finally, a toxic chemical use fee would have the effect of reducing the overall
exposure of the chemicals used without the requirement to set individual limits.
A toxic chemical use fee is easier and more efficient to administer than a commandand-control type of regulatory program. Can you imagine the complexity of a regulatory agency determining what an acceptable level of use would be for each chemical,
for each process, for each company in the United States?
As the cost of toxic chemicals will be increased to include the total cost of using
the chemicals, there will be an economic incentive to develop lower-toxicity alternatives or processes that do not require the use of higher-toxicity chemicals.
Any toxic chemical use fee collection program should be revenue neutral, with
fees collected used for the following:
• Administration of the program
• Research on developing alternative chemicals and processes to reduce the
use of highly toxic chemicals
• Grants or low-interest loans for companies to implement process changes
needed to reduce or eliminate use of toxic chemicals
• Providing technical assistance to companies in evaluating or implementing
projects to reduce use of toxic chemicals
• Funding of medical programs aimed at those adversely impacted by toxic
chemical use