14 Unit 5 Government Regulation and Property
➢ Buy (more expensive) pesticide-free produce.
2. Externalities pose an enormous problem for the environment. Oftentimes, the people making
decisions do not bear the full cost of their choices. Thus, the owners of a power plant that emits tons
of greenhouse gases are shifting some of these costs to the rest of the world and even to future
generations. Businesses tend to fight efforts to make them pay these externalities. For example,
CropLife America lobbied against a bill that would support research on the effects of chemicals on
children. On the other hand, Nike recently announced that it had resigned its seat on the board of the
United States Chamber of Commerce in response to the Chamber’s active lobbying against legislation
that would regulate greenhouse gases. But Nike will remain a member of this group. What ethical
obligation do American companies have to support environmental legislation that may impose higher
costs? Do they have an obligation to look out for the greater good, or should they focus on
maximizing their shareholder returns? What life principles would you apply?
3. Is cost benefit analysis an effective tool in environmental disputes? How do we measure the costs and
benefits? How do we know what benefits we might gain from saving endangered species? Or
improving visibility at the Grand Canyon? In the Entergy case, how does the EPA calculate the
benefits of not squashing fish against intake screens? Should you survey people to ask them how
much it is worth? Or just think in terms of lives saved or sick days avoided? Or should we protect the
environment regardless of cost?
4. Many of the environmental statutes permit citizen suits. As a result, environmental groups bring many
lawsuits against both the EPA and polluters, alleging violations of these statutes. Are these suits a
good idea? The Fish and Wildlife Service says that it spends so much of its resources responding to
litigation over why it has not listed endangered species that it has no resources left to actually to do
the listing. Businesses argue that it is unfair for every citizen to be a cop on the beat. On the other
hand, environmental groups often supplement the limited resources of the EPA.
5. The Winter case deals with the balance between national security and the environment. Consider
these additional issues: What if the President felt it was important to national security to store
reserves of oil in a manner that could harm groundwater? Or permit drilling in areas that are
environmentally fragile such as Alaska or the gulf coast? Would you support such decisions? Should
there be a review process for these decisions?