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The production of material goods and generation of wealth in growing industrial economies requires a balance to be struck between economic development and the alleviation of poverty,and preservation of the environment for future generations.In emerging economies the latter is often sacrificed to the former,but as societies become richer concern for protection of the environment usually grows,and legal regimes to protect the environment tend to strengthen,imposing heavier burdens on polluting firms and exposing them to greater potential tort liabilities and regulatory actions.Insurance is often then considered as a mechanism for spreading risk and funding compensation and remediation.