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ECONOMIC ANALYSIS AND RISK MANAGEMENT: AN APPLICATION TO HAZARDOUS WASTES
Citation:
Anderson, R., R. Dower, AND E. Yang. ECONOMIC ANALYSIS AND RISK MANAGEMENT: AN APPLICATION TO HAZARDOUS WASTES. U.S. Environmental Protection Agency, Washington, D.C., EPA/600/2-84/001.
Description:
The report evaluates the usefulness of economic analysis in designing effective and efficient hazardous waste regulations. In particular, it examines the applicability of cost/benefit analysis to the specific problems posed by hazardous waste mangement. The background for the analysis is provided by case studies of regulatory actions on coke oven emissions, saccharin, aflatoxins, and radiation. The report also presents several detailed case studies of past hazardous waste spills. These case studies provided information on how hazardous waste regulations can be analyzed within a cost/benefit framework. The report then selects two specific problems in hazardous waste management to demonstrate qualitatively the application of cost/benefit analysis: uncontrolled dump sites and siting of hazardous waste facilities. It is clear that inadequate data generally will prevent a formal cost/benefit analysis from being undertaken for regulatory programs. However, significant insights can be gained by applying economic analysis to hazardous waste regulations to the extent that available data allow. Such an exercise allows decisionmakers to take a comprehensive and objective view of alternative regulatory policies, revealing cost and benefit relationships and regulatory response priorities.