Balancing environmental and industry sustainability: a case study of the US gold mining industry.
Mandatory insurance requirements and/or mitigation fees (royalties) for mining companies may help reduce environmental risk exposure for the federal government. Mining is examined since the Environmental Protection Agency (EPA) Toxic Release Inventory reveals that this sector produces more hazardous waste than any other industrial sector. Although uncommon, environmental expense can exceed hundreds of millions of dollars per development. Of particular concern is the potential for mines to become unfunded Superfund sites. Monte Carlo simulation of risk exposure is used to establish a plausible range of unfunded federal liabilities associated with cyanide-leach gold mining. A model is developed to assess these costs and their impact on both the federal budget and corporate profitability (i.e., industry sustainability), particularly if such costs are borne by offending firms.
Finnie
Bruce
B
School of Business, Pacific Lutheran University, Tacoma, WA 98447-0003, USA. finniebw@plu.edu
Stuart
Jeffrey
J
Gibson
Linda
L
Zabriskie
Fern
F
D003247:Conservation of Natural Resources / Q000191:economics / Q000331:legislation & jurisprudence / Q000379:methods*; D030881:Disclosure / Q000331:legislation & jurisprudence; D004777:Environment; D004787:Environmental Pollution / Q000191:economics / Q000331:legislation & jurisprudence; D006046:Gold; D033161:Government Regulation; D006256:Hazardous Waste / Q000191:economics / Q000331:legislation & jurisprudence; D007341:Insurance / Q000191:economics; D016365:Liability, Legal / Q000191:economics; D008906:Mining / Q000191:economics* / Q000331:legislation & jurisprudence; D008962:Models, Theoretical; D018570:Risk Assessment; D012307:Risk Factors; D014481:United States
D006256:Hazardous Waste; D006046:Gold