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A Case Study of a Hazardous Waste Site: Perspectives from Economics and Psychology, Volume IV of Improving Accuracy and Reducing the Costs of Environmental Benefits Assessments
This 1986 study by the University of Colorado uses concepts and methods of analysis drawn from both economics and cognitive psychology to understand the sources of a large drop in property values that occurred near the Operating Industries Incorporated (OII) Landfill in Monterey Park, California. The study reports on the substantial impact of the Landfill on property values and on the results of a survey of subjective risks. Two main conclusions emerge from the study results: (1) Subjective health risks are likely to be overestimates of the objective risks, and (2) the overestimated subjective health risks are associated with significant property value losses.
The study is organized into the following chapters:
Introduction and summary
A brief review of the economic and psychological issues
Theoretical issues in the analysis of hazardous waste risks--develops an economic theoretical basis for subjective measures of damages, benefits, and costs using concepts drawn from psychology. This provides the economic rationale for benefit-cost analysis of remedial actions at Superund sites including risk communication. Risk communication is found likely to be a cost-effective way of reducing subjective damage.
Preliminary property value studies--presents data on three hazardous waste sites used to find a suitable site for detailed analysis.
Survey and sample design
Data collection and description
In addition, there is an appendix entitled "Valuing Risk: A Comparison of Expected Utility with Models from Cognitive Psychology."
1. Benefits Analysis
1. Benefits Analysis - Valuation
1. Benefits Analysis - Valuation - Stated Preference
1. Benefits Analysis - Valuation - Stated Preference - Contingent Valuation
1. Benefits Analysis - Valuation - Revealed Preference
1. Benefits Analysis - Valuation - Revealed Preference - Property ValueEnvironmental Media:
c. Land - Superfund/CERCLAAuthors:
Schulze, William D.
McClelland, Gary H.
Smith, JoyEPA Project Officer/ Manager:
Carlin, AlanGeographic Area: California, Monterey Park (CA)Study Purpose: Empirical ApplicationReport Series: Improving Accuracy and Reducing Costs of Environmental Benefit Assessments
List of all reports in the Series:
1) Valuing Eastern Visibility: A Field Test of the Contingent Valuation Method
2) Reconciling Averting Behavior and Contingent Valuation Benefit Estimates of Reducing Symptoms of Ozone Exposure
3) Field and Laboratory Experiments on the Reliability of the Contingent Valuation Method, a volume of Improving Accuracy and Reducing Cost of Environmental Benefit Assessments Series
4) Risk Communication for Superfund Sites: An Analysis of Problems and Objectives, a volume of Improving Accuracy and Reducing Costs of Environmental Benefit Assessments
5) Estimating Benefits of Reducing Community Low-Level Ozone Exposure, Volume III of Improving Accuracy and Reducing Costs of Environmental Benefit Assessments
You are here--> 6) A Case Study of a Hazardous Waste Site: Perspectives from Economics and Psychology, Volume IV of Improving Accuracy and Reducing the Costs of Environmental Benefits Assessments
7) Value of Symptoms of Ozone Exposure: An Application of the Averting Behavior Method, a volume of Improving Accuracy and Reducing Costs of Environmental Benefits Assessments
8) Valuation of Visual Forest Damages from Ozone, a volume of Improving Accuracy and Reducing Costs of Environmental Benefit Assessments
- Participating Organizations
Colorado, University of, Departments of Economics and Psychology Address:
City: Boulder State: CO ZIP:
Environmental Protection Agency Address:
City: Washington State: DC ZIP: 20460
- Report Details
FinalDate: 05/01/1986Number of Pages: 209Grant/Contract #: CR812054-02
- How to Obtain Report