The environmental and policy implications of investment strategies in the Canadian pulp and paper industry: An economic analysis based on water quality standards

This dissertation argues that neo-conservative, short-term, resource exploitative approach to development is inconsistent with the fundamental principles of sustainable development. Most importantly, the environment-competitiveness dichotomy argument favoured by neo-conservatives is not only untenable, but incorrect. Instead, the dissertation advocates the adoption of an innovation-based, long-term, pollution prevention approach to environmental policy in order to achieve simultaneously environmental, economic and social objectives. This is essential if society is to embrace the concept of sustainable development and the underlying principle of socio-economic-environmental policy integration.;The pulp and paper industry in Canada is used to illustrate the environmental and economic ramifications of the short-term versus long-term approaches. Japanese pulp and paper mills in Canada are presented as a model of the long-term investment strategy. The performance of the model mills is compared to the other mills in Canada, a large number of which have followed a short-term strategy. The environmental performance of pulp and paper mills is evaluated based on water quality and pulp and paper mill effluent standards. This comparison demonstrates the environmental and economic advantages of adopting a long-term investment strategy.;The second chapter discusses the inconsistency of the static neo-conservative perspective with the long-term goals of sustainable development and suggests an innovation-based approach as a more environmentally responsible alternative. Chapter three examines the recent economic performance of the pulp and paper industry in Canada and chapter four outlines the water pollution problems generated by the industry over the same time period. Chapter five compares the environmental and economic performance of Japanese mills with the remaining mills in Canada, and demonstrates the superior performance of mills following a long-term strategy. Chapter six discusses the constitutional, political and practical issues associated with the introduction of industry-specific measures within a broader, holistic environmental policy framework. The final chapter presents a more holistic environmentally-responsible policy framework and suggests the greater use of economic instruments as a means to encourage the pulp and paper industry and consumers to further reduce water pollution in Canada.