GWD-9-Q9 to GWD-9-Q11:

Among the myths taken as

fact by the environmental managers

of most corporations is the

Line belief that environmental regula-

(5) tions affect all competitors in

a given industry uniformly. In

reality, regulatory costs—and

therefore compliance—fall

unevenly, economically disad-

(10) vantaging some companies and

benefiting others. For example,

a plant situated near a number

of larger noncompliant competitors

is less likely to attract the

(15) attention of local regulators than

is an isolated plant, and less

attention means lower costs.

Additionally, large plants can

spread compliance costs such

(20) as waste treatment across a

larger revenue base; on the other

hand, some smaller plants may

not even be subject to certain

provisions such as permit or

(25) reporting requirements by virtue

of their size. Finally, older production

technologies often

continue to generate toxic wastes

that were not regulated when the

(30 ) technology was first adopted.

New regulations have imposed

extensive compliance costs on

companies still using older

industrial coal-fired burners that

(35) generate high sulfur dioxide and

nitrogen oxide outputs, for

example, whereas new facilities

generally avoid processes that

would create such waste pro-

(40) ducts. By realizing that they

have discretion and that not all

industries are affected equally

by environmental regulation,

environmental managers can

(45) help their companies to achieve

a competitive edge by anticipating

regulatory pressure and

exploring all possibilities for

addressing how changing regula-

(50) tions will affect their companies

specifically.