CAPITALIZING AND APPROPRIATING SOCIETY'S RIGHTS TO CLEAN AIR: A COMMENT ON WAMBSGANSS & SANFORD'S ACCOUNTING PROPOSAL

Abstract Wambsganss and Sanford propose that utilities capitalise sulfur dioxide emission permits gifted to them by the Environmental Protection Agency. This commentary critically rejects such a proposal. Wambsganss and Sanford's proposal relies on unacceptably narrow assumptions that utilities and their shareholders own rights to pollute and that economic efficiency should be the sole arbiter in determining the regulation of environmental resources. By a brief historical analysis of the U.S. emissions regulations, such assumptions are shown to be both invalid, and, in fact, potentially self-defeating.