This document discusses the use of market-based mechanisms by the Environmental Protection Agency (EPA) to reduce acid rain. It explains that the EPA implemented a cap and trade program as part of the 1990 Clean Air Act Amendments to incentivize businesses to reduce emissions. The program set emissions caps for businesses and allowed them to trade allowances if their emissions were below the cap. This gave businesses flexibility while achieving reductions. The program was successful, with sulfur dioxide emissions dropping substantially in the first 5 years as businesses took advantage of the cost-saving opportunities of reducing emissions.

1. You will reply to 2 classmates. Every reply should be 200-300
words and should advance the conversation further by providing
new ideas and insights, asking probing questions that get to the
heart of critical issues, and share from one’s personal and
professional experience. For the purposes of citations, every
reply must include:
At least 1 scholarly article;
A relevant business article (any article from a reputable
business source—website, magazine, book, etc.—that discusses
a relevant business/ethical issue)
Remember to provide new ideas, research, and analysis that
create a clear dialogue with your classmate’s ideas.
Go beyond providing basic definitions to topics being
discussed—that is information that should have been provided
in the original post.
Your replies should not read as just another thread, nor should
it merely regurgitate and restate what your classmate has said,
or what you said in your own thread from the week before, for
that matter.
First DB Qustion
Introduction
Businesses definitely must be involve in the development of
betterment of the environment about what is required by law in
order to benefit the organization and its future, develop better
relations with the partners in the society, and promote a better
life for consumers, employees, and families of the
community.

2. Businesses’ Involvement
Sometimes businesses get involve in environmental activities
due to the benefits attached to these types of activities. For
example,
“Many businesses have come to the conclusion that “going
green” gives them a competitive advantage over other
businesses. Not only does it often same them money, but it can
also gain new customers since environmental concerns are so
popular among consumers” (Fisher, n.d.).
This is a very important factor on why businesses should be
very involve in the protection of the environment that allow the
organization to prosper thanks to the natural resources that the
Lord let us utilize in this world. Many more Christians are
involve and educated above the positive and negative
consequences of “going green” (Fisher, n.d.).
Businesses’ Practices
The businesses are practicing and witnessing more and
more the benefits of programs such as recycling, impact of
production on the environment, water waste. Businesses that
actually support and develop this type of programs are ripping
the benefits at many levels. In a recent study Fernando,
Lawrence, Kelly, & Arunachalam (2015) found that “foreign-
owned companies are more likely than Sri Lankan-owned
companies to adopt environmental practices” (p. 875). This
small action from foreign businesses provides credibility that
otherwise the company will not possess in a foreign culture.
Government and Businesses Partnerships (GPB)’
Due to many issues such as pollution, natural environmental

3. disasters, and negative press coverage organizations venture
into businesses / government efforts in order to support and
improve the current environmental situation on the ground as
well as help their image with the community. An explanation of
why the partnerships are important to businesses is that “GBPs
are formed not only in response to public pressures, but also as
a strategic means to seek opportunities related to environmental
improvements” (Lin, 2014, p. 384). At times, a negative image
of a business event that affects the environment forces the
corporation to enforce and increase support for the GBPs.
Biblical Integration
Last, the bible states the following: “In everything I did, I
showed you that by this kind of hard work we must help the
weak, remembering the words the Lord Jesus himself said: ‘It is
more blessed to give than to receive” (Acts 20:35, NIV).
Businesses understand that many times as they get involve in
volunteer work that helps employees, consumers, and the
communities around its area; they receive more in the long run
due to their good reputation and support from the community
due to their support.
Conclusion
Research shows that businesses that support the environment
and help the communities around the area to prosper are prosper
as they involve in more activities as required by law. These
bold moves by businesses to support the need of the community
many times provides longevity benefits to these businesses and
a positive image; in addition, government and businesses
practices and “environmental partnerships” are popular for the
last few decades due to the benefits that its provides to the
communities. This powerful combination of money, policy, and
power provides a wealth of benefits to no just the communities,
but also to the businesses that get involved in this positive

4. commitment to help the environment. (Lawrence & Weber,
2017, p. 222).
References
Bible Gateway. (1995). Retrieved from
https://www.biblegateway.com/
Fernando, S., Lawrence, S., Kelly, M., & Arunachalam, M.
(2015). CSR practices in Sri Lanka:
An exploratory analysis. Social Responsibility Journal, 11(4),
868-892. Retrieved from
http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/1713922127?accountid=12085
Fischer, K. (n.d.).
Part 3: Contemporary Issues
. {PointeCast three}.
Lawrence, A. & Weber, J., (2017).
Business & Society: Stakeholders, Ethics and Public Policy
,
15
th
Ed., Chapter 2. New York, NY: McGraw-Hill Education.
doi:10.1007/s10551-013-2012-8

5. Lin, H. (2014). Government–Business partnership formation for
environmental improvements.
Organization & Environment, 27(4), 383-398.
doi:10.1177/1086026614554716
Second DB Question
Market-Based Mechanisms and Acid Rain
The Environmental Protection Agency (EPA) is the main
environmental regulatory agency in the United States (Dhanda,
1999). After its inception, the EPA attempted to enforce
environmental standards and regulations through an
authoritarian approach called “command and control”
(Lawrence & Weber, 2017). With command and control, “the
government commands business firms to comply with certain
standards and often directly controls their choice of technology”
(Lawrence & Weber, 2017, p. 212). However, the EPA has

6. identified that businesses are more inclined to change how they
operate if there is an incentive. These incentive approaches are
called “market-based mechanisms” and they have been proven
to be the most effective for the EPA in reducing emissions
problems such as acid rain (Lawrence & Weber, 2017). When
combining market-based mechanisms with emission regulation,
McLean (1999) states that, “a market-based approach to
emission regulations gives businesses the flexibility they need
to take advantage of numerous cost saving opportunities as
multiple methods for reducing emissions competed with each
other” (p. 662).
Acid Rain
Acid rain is detrimental to ecosystems, external structures, and
human health. Lawrence and Weber (2017) state that, “acid rain
is formed when emissions of sulfur dioxide and nitrogen oxide,
by-products of burning fossil fuels…combine with natural water
vapor in the air and fall the earth as rain or as snow” (p. 209).
Although acid rain can occur naturally through volcanoes, the
major contributors of acid rain are power plants, vehicles, and
manufacturers (United States Environmental Protection Agency
[EPA], 2017). For fish and wildlife, “acid rain water can leach
aluminum from soil clay particles and then flow into streams
and lakes. The more acid that is introduced…the more
aluminum is released” (EPA, 2017). For plants and trees,
“acidic fog and clouds…strip nutrients from trees’ foliage,
leaving them…less able to absorb sunlight, which makes them
weak” (EPA, 2017). Because of these detrimental effects to
ecosystems, the EPA initiated the Acid Rain Program with
market-based mechanisms as part of the Clean Air Act
Amendments in 1990 (Dhanda, 1999).
Market-Based Mechanisms
In order for the EPA to implement their new Acid Rain
Program, they introduced market-based mechanisms such as
“tradable allowances, pollution fees and taxes, and incentives to
achieve environmental objectives where possible” (Lawrence &
Weber, 2017, p. 214). These mechanisms were, “based on the

7. idea that the market is a better control than extensive standards
that specify precisely what companies must do” (Lawrence &
Weber, 2017, p. 213). Essentially, these approaches give
businesses the freedom to choose what works best for them in
terms of compliance. According to McLean (1999), “this new
approach [tradable allowances] became known as ‘cap and
trade’” (p. 661). Within the cap and trade program, businesses
were authorized emission caps, and if their emissions fell below
their authorized cap, they were allowed to transfer, or sell,
allowances to businesses that are operating over their own cap.
The ability to sell allowances, through the market-based
approach, incentivized businesses to reduce their own
emissions. Additionally, the fees associated with exceeding
their allowance, $2,000 per ton, incentivized businesses to
conform as well (Dhanda, 1999). Since its inception, the Acid
Rain Program, and its cap and trade method, has been successful
in reducing the amount of emissions in the United States
through market-based mechanisms. “In the first 5 years of the
Acid Rain Program, sulfur dioxide emissions…were reduced
substantially and all sources were in compliance with respect to
their allowable emissions” (McLean, 1995, p. 662).
Conclusion
Proverbs 21:20 states, “Precious treasure and oil are in
a wise man’s dwelling, but a foolish man devours it” (ESV).
The Acid Rain Program, and its market-based mechanisms, has
been successful because of its accountability requirements and
its level of simplicity. McLean (1999) states that, “simplicity
can be achieved if the government focuses on setting goals and
measuring results, and…lets the market figure out how to meet
those goals” (p. 665). Dr. Fischer (n.d.) also states that
businesses are realizing that, “going green saves them
money…because they are wasting less resources…and it also
gives them a competitive advantage” (0:50). The required push
by the EPA has delivered, “a significant cost savings over
traditional environmental regulations and, at the same time, has
led to a drop in…acid rain” (Dhanda, 1999, p. 263).

8. References
Dhanda, K. K. (1999). A market-based solution to acid rain: The
case of the sulfur dioxide trading program.
Journal of Public Policy & Marketing, 18(2)
, 258-264.
Fischer, K. (n.d.). Contemporary issues.
Lawrence, A. T., & Weber, J. (2017).
Business and society: Stakeholders, ethics, public policy
. New York, NY: McGraw-Hill Education.
McLean, B. J. (1999). Emissions trading: U.S. experience
implementing multi-state cap and trade programs.
Journal of Business Administration and Policy Analysis,
659-668.
United Stated Environmental Protection Agency. (2017). What
is acid rain? Retrieved April 20, 2017, from
https://www.epa.gov/acidrain/what-acid-rain