41. Imposing heavy penalties on those who pollute or destroy the environment is one
way to preserve our environment. But it is not the only way; nor is it the best way.
Penalties may elicit grudging compliance, but other approaches―those that instill a
sense of genuine commitment―are likely to be more effective in the long term.
Admittedly, motivating compliance with environmental regulations by way of
penalties will serve environmental goals up to a point. The deterrent effect of these
remedies cannot be denied. Yet it should not be overstated. Some businesses may
attempt to avoid punishment by concealing their activities, bribing legislators
to modify regulations, or moving operations to jurisdictions that allow their
environmentally harmful activities. Others might calculate the trade-off between
accepting punishment and polluting, budget in advance for anticipated penalties, then
openly violate the law. My intuition is that this practice is a standard operating mode
among some of our largest manufacturers.
A better way to ensure environmental protection is to inculcate a sense of genuine
commitment into our corporate culture―through education and through shareholder
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