246 



pate and avoid severe local and regional economic dislocations and 

 stimulate adjustment assistance and job retraining. 



♦ ♦♦ 



As we stated at the outset, economic and environmental well- 

 being are mutually reinforcing goals that must be pursued simultane- 

 ously if either is to be achieved. Economic growth cannot be sustained 

 if it continues to undermine the healthy functioning of the Earth's nai 

 ural systems or to exhaust natural resources. By the same token, only 

 healthy economies can generate the resources necessary for investments 

 in environmental protection. 



Poverty is the enemy of the environment. Environmental protec- 

 tion is not possible where poverty is pervasive and the quality of life 

 degraded. For this reason, one of the principal objectives of environ- 

 mental policy must be to ensure a decent standard of living for all. 



Innovations made to achieve sustainable development will them- 

 selves bring major economic benefits. The economic advantage of 

 using materials and energy efficiently is obvious, and the domestic pro- 

 duction and use of environmentally sound technologies will reap prof- 

 its both for the U.S. firms that sell them and for those who use them. 



The most cfUcient way to achieve environmental progress, there- 

 fore, is to harness market forces. Here, the role of public policy is to 

 send the right signals to the economy — "getting the prices right" and 

 making the marketplace work for instead of against environmental pro- 

 tection. Taxes and subsidies can be used to ensure that prices reflect 

 environmental costs. 



Wc harbor no illusions that market economics alone will put the 

 United States or the world on the path to sustainable development. 

 Government regulations and private and individual initiatives are also 

 required. Regrettably, the U.S. statutory and regulatory system is woe- 

 fully inadequate, cumbersome, and sometimes even perverse with 

 respect to environmental issues. A regime that now emphasizes "end-of- 

 the-pipe" cleanup must be radically reformed into one that makes use ol 

 economic incentives and encourages pollution prevention. Ch.-ingin|> 

 product design or manufacturing processes to minimize or prevent pol 

 hit ion is obviously superior to mandating expensive cleanups niter ili<- 

 fact. And an environmentally literate public can encourage such effuris 

 by demanding environmentally acceptable products. 



Crisis and Orroii iVNrry xv 



