Industry should be sited at locations where its environmental load does the
least damage. We examined the particular case of paper production at eight
paper mills in relative pristine environments in Norway and calculated res
ource use, emissions, and environmental effects, the last theme in terms of
12 end point criteria. Compared to a scenario corresponding to fictitious
mills sited in densely populated industrial regions in West-Central Europe
we obtained end point damages ranging from 3% to 23% of these "worst-case"
damages for 9 of the 12 end point attributes. For three of the end points t
here we re no clear differences. Reasons for the smaller damages in the Nor
wegian environment were higher dilution and self-cleaning capacity of air a
nd water recipients,lower background concentrations of pollutants, and lowe
r concentrations of natural and cultural resources. When we applied low-end
and average "unit pollutant prices" for a selection of the paper industry'
s resource uses and pollutant emissions, the damage costs were 7-17% of the
paper industry's contribution to the gross domestic product. However, even
if there are advantages in terms of reduced damages by locating industry t
o pristine environments, the actual siting decision also depends on consist
ent and durable economic and political value judgments.