Legislators passed a resolution to please environmentalists but made it unenforceable to appease businesses. The document agrees with this statement, explaining that environmental groups push for legislation to reduce industry's environmental impacts, while businesses oppose stringent rules that increase costs. Seeking to balance these interests, the government passes laws without enforcing them, so neither group is fully satisfied but both interests are acknowledged.

1. Legislators pass noble sounding resolution to please environmentalists but make it unenforceable
to keep business community happy. Do you agree or disagree? Give reasons for your answer.
Solution
The above statement is true (I agree to it). There is a strong business and environment lobby that
tries to put forward their interests to the civil society and the government. It is important to
understand their interests and concerns of the stakeholders:
The environmentalists act to save the environment for costs of industrial activities.
Environmental degradation has costs but only to be felt in future. Some of these costs may be felt
over a shorter horizon and they present a strong case for action. The environmentalists thus push
for legislation so that they can minimize effects of industrial activities.
Much of the legislation would impact the business interests of the society. The business
community must either bear the cost of abatement or stop production. The cost of abatement
would increase the marginal costs or render them incompetitive in global markets. Note that
some of these producers might be selling products in countries with no environmental regulation.
The government tries to savor interests of the environment while not compromising the interests
of the business community. The only way it could make that happen is by putting in place the
legilation but not enforcing it.