Lakes into Garbage Dumps?

By Samantha Zaluski

Sixteen lakes across Canada are proposed to be redefined as mine tailing ponds or dump sites. The residences around the lakes are concerned about the environmental and health effects of the chemicals. However the lakes are perfect basins to submerge tailings from near by mining operations. In the article, " Lakes across Canada face being turned into mine dump sites", Terry Milewski discusses the regulatory control of the laws and the protest from the people. This article discusses the current regulatory situation, how economic incentives could be used instead, and evaluates which is the better alternative.

In Canada, the Fisheries act states that it is illegal to dispose of any dangerous chemical into waters with fish. The Mining Act Schedule Two states that the federal government can rename a lake an area for trailing waste. Catherine Coumans, a spokeswoman for the environmental group Mining Watch, says that it is making it too easy for mining companies to reclassify lakes and other waters as mine dump sites because of the government is increasingly. Therefore it is cheaper for mining companies to not build dumps rather they ask the government to convert a lake into one. There is obviously a loophole in the laws.

There are different ways to achieve environmental protection and governmental controls: regulations and economic incentives, making the polluters accountable for any damages created by their actions. Regulatory controls dictate implementing a certain way to reduce or eliminate pollution. Economic incentives motivate companies to develop their own way to reduce pollutants to a prescribed level and fine them if they exceed the limit, or reward them if they stay below the limits. Another economic method is to impose a tax on damages caused by pollution. Another choice would be for the government to offer money to mining companies to develop environmentally sound tailings disposal methods.

With economic incentives businesses can determine the best method to reduce or eliminate pollution, encouraging technological innovation. Each company is individually responsible for whether or not they are rewarded, taxed or fined.

In principle economic incentives seem like the best solution to this problem, since they reduce pollution and allow greater innovations in technology. However, unless the regulations are tightened up, there may be no reason for mining companies to stop dumping tailings. The mining companies have huge profits, so the government would need to impose immense taxes or fines, or provide immense rewards. After the regulations are improved, economic incentives might work. Regardless, the current situation is deplorable and must be remedied soon.

References

Anderson, Dawn. “Regulatory Policy vs Economic Incentives”. The Economist.1989 http://www.enviroliteracy.org/article.ph p/1329.html

Milewski, Terry. “Lakes across Canada face being turned into mine dump sites”. CBC News. 2008. http://www.cbc.ca/canada/story/2008/06/16/condemned-lakes.html