According to the sustainable development concept there is a very important relationship between the economic development and environment protection against various types of contaminations and pollutions,especially; those caused by chemical industrial firms. Unfortunately, many firms suffer from equipment aging, old, and small production-units employ obsolete technologies. The factories rehabilitation or replacement of the worn-out equipment with the new, modern, and environmentally friend technologies require investments. This paper addresses the problem of industrial pollution and measuring the economic and environmental effects of investment in the chemical industries.The research sample includes El Nasr Company for Fertilizers and Chemical Industries “SEMADCO" and The Egyptian Chemical Industries Company “KIMA".“SEMADCO" and “KIMA" firms are Egyptian contributing companies belonging to the Chemical Industries Holding Company (CIHC) and the Ministry of Public Business Sector (MPBS) in A. R. E.It is concluded that the more efficient investments in chemical industries the less the harmful environmental effects of chemical industries. The less the harmful environmental effects of chemical industries the more investments economic benefits in chemical industries.The more the costs of pollution prevention the less the harmful environmental effects of the chemical industries.It is recommended that the firm's management give more attention for the efficient investments with great feasibility studies. Such investment has economic; “more financial benefits" and environmental benefits; “less harmful environmental effects". Also, It is recommended that the firm's management taking in consideration the proposed model for the accounting disclosure of environmental information. As that disclosure has great importance in the field of planning and controlling to protect the environment from pollution risks caused by the chemical firms.