Ema Probes Oil Threat at Wasa Treatment Plant

Microecinomics - BECN 100

Assignment #1

EMA Probes Oil Threat At Wasa Treatment Plant

Caroni Water Treatment Plant, a water plant located in Trinidad, had a scare on Tuesday when oil from an equipment repair business had spilt into the Caroni River and was dangerously nearing the plant. The Water and Sewerage Authorties were contacted to investigate the situation at hand. They also contained the oil using oil booms from causing further damage. Luckily the water supply was not contaminated and the plant was able to reopen again. Authorities however are still investigating the situation and are unsure weather the company would be fined.

I think companies should be punished serverly for causing environmental harm such as this oil spills. This is an externality that effects literally everyone within that region and had the potential to reach very harmful levels. It is clear that this business was trying to minimise their costs by ridding themself of their excess materials in the least costly way, hence dumping the oil into the river. However now the business will face an even more serious tradeoff with regards to their business operations. If government officials decide to press charges the business could potentially face a financial strain which would in turn effect their productivity most importantly its survival within the market.

All things remaining the same, certis parabis, had the water at the Caroni plant been contaminated I think the demand for water would increase even further because it would then be a scarce resource even more so because water does not have a subsitute. Thankfully within this day and age we have enough technology to help us conquer and control serious economic dillemas such as this one. Although Trinidad is a market economy, within the future I think governments should further regulate how businesses impact the environment. It is quite evident they would do anything to get an edge over the competition.