ays in which environmental protection regulation may be applied to chemical products manufacturers. In the first instance, regulations may be implemented which require that processes and procedures be employed which will limit pollution of the environment. In this instance, all domestic chemical products manufacturers are affected equally, in that each must incur the necessary costs of environmental protection. Thus, the competitive positions among domestic producers will not, of necessity, be impacted by environmental protection. It should be noted, of course, that the cost of required processes and procedures might exceed the financial capacities of some manufacturers; thus, effectively forcing them out of business.
The costs of the required environmental protection procedures would be able to be passed on by the domestic manufacturers to either consumers or industrial users. Thus, within the realm of domestic competition, short run profitability should not be impacted by environmental regulation. It shouldalso be noted, however, that significan
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