We begin with the usual disclaimer in economic studies about the costs of environmental regulation. In this article we quantify the costs of environmental regulation and compare these costs with those of govemmentally mandated activities that are financed directly through the government budget. We have not attempted to assess the benefits resulting from a cleaner environment.* 1 We have not accounted for consumption benefits resulting from environmental cleanup or production benefits associated with pollution abatement. The

conclusions of this study cannot be taken to imply that pollution control is too burdensome or, for that matter, insufficiently restrictive.