Examples of environmental costs incurred by firms

Examples of environmental costs incurred by firms (adapted from EPA, 1995).

Potentially Hidden

Costs

Regulatory Upfront Voluntary

Notification Site Studies Community Relations

Reporting Site preparation Monitoring/testing

Monitoring/testing Permitting Training

Studies/Modeling R&D Audits

Remediation Engineering/Procurement Qualifing Suppliers

Recordkeeping Installation Reports (e.g. Env. Reports)

Plans Insurance

Training Conventional Costs Planning

Inspections Capital Equipment Feasibility Studies

Manifesting Materials Remediation

Labelling Labor Recycling

Prepardness Supplies Environmental studies

Protective Equipment Utilities R&D

Medical Surveillance Structures Habitat/Ecosystem

Protection

Env. Insurance Salvage Value Landscaping

Financial Assurance Financial Support

Pollution Control Back-end

Spill Response Closure/Decommissioning

Stormwater Management Disposal of Inventory

Waste Management Post-closure Care

Taxes/Fees Site Survey

Contingent Costs

Future Compliance Costs Remediation Legal Expenses

Penalties/Fines Property Damage Natural Resource Damages

Response to Future

Releases

Personal Injury Damage Economic Loss Damages

Image and

Relationship Costs

Corporate Image Relationship with Staff Relationship with Lenders

Relationship with

Customers

Relationship with Suppliers Relationship with

community

Relationships with

Investors

Relationship with regulator