Environmental Economics

Risk Premiums for Environmental Liability: Does Superfund Increase the Cost of Capital

This report is an investigation of the extent to which Superfund liability can influence the cost of capital. By increasing the uncertainty of the return on capital, the study finds that Superfund liability can increase the cost of raising new capital for firms, or at least larger firms. The report includes a copy of a Journal of Environmental Economics and Management article plus an Appendix B, entitled "Results based on Arbitrage Pricing Theory." The report can be obtained from http://www.rand.org/cgi-bin/Abstracts/ordi/getabbydoc.pl?doc=RP-755

  • Keywords

    Subject:
    3. Cost and Economic Impacts Analysis
    4. Economic Incentives and Other Innovative Approaches
    3. Costs and Economic Impact Analysis - Specific Sectors and Pollutants
    3. Costs and Economic Impact Analysis - Economic Impacts
    4. Economic Incentives and Other Innovative Approaches - Liability
    Environmental Media:
    c. Land
    c. Land - Superfund/CERCLA
    Authors:
    Garber, Steven
    Hammitt, James K.
    EPA Project Officer/ Manager:
    Gillis, Thomas
    Geographic Area:
    United States
    Study Purpose:
    Empirical Application, Data Development
    Inventory Record #: PE-0014
  • Participating Organizations

    Research Organization:

    The RAND CorporationAddress: 1700 Main Street
    City: Santa Monica State: CA ZIP: 90407
    Phone: Fax:
    E-mail:
    Funding Organization:
    Environmental Protection Agency, Office of Policy, Planning and EvaluationAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
  • Report Details
    Type:
    Final
    Date:
    01/01/1999
    Number of Pages:
    42
    Comment: RAND report RP-755
  • How to Obtain Report

    Not available from EERM
    Other Ways to Obtain the Report:
    You can obtain this report by contacting directly at:
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