Economic Impact Analysis of Effluent Limitations and Standards for Plastics Molding and Forming Industry

摘要

The U.S. Environmental Protection Agency issued effluent limitations and standards in December, 1984, for the Plastics Molding and Forming Industry. The report estimates the economic impacts associated with pollution control costs. Plant specific treatment costs for 20 percent of the impacted plants are compared to estimated pre-tax plant income to assess the impact of treatment costs on plant liquidity. Then a closure analysis is performed, comparing the current salvage value of the plant's assets with the present value of the plant's cash flow plus the terminal value of its assets. The results are extrapolated to the 558 plants which, as direct dischargers, would be impacted. The results of this plant-level analysis are used to assess the indirect impacts of the regulation, e.g., price changes, unemployment and shifts, in the balance of foreign trade.