Environmental laws can affect the way a business operates. For example, we should take a wood-cutting business as an example. This lumber business needs to cut down trees in a given area to create planks, fuel, etc. to sell to make a profit. However, the government instituted a set of environmental laws that limit the amount of trees that may be cut down in an area of the forest, including the area this lumber business operates. This decreases the amount of supply the business can incur, and can lead to loss of business as well as the business going bankrupt.
Without an compromise with businesses, the environmental law may force the business, which leads to the business closing and the loss of jobs. On the other hand, cutting down too much trees would result in deforestation as well as the destruction of the ecosystem.
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