Natural Resource Damage Assessment Methods: Lessons in Simplicity from State Trustees

摘要: I. INTRODUCTION Natural resource damages can be caused by releases of hazardous materials, such as oil and toxic chemicals into the environment. The damage may extensive, in case polychlorinated biphenyl contamination Lower Fox River Wisconsin, which led to national (NRD) settlements exceeding $42 million (Ando Wildermuth, 2004) American Trader spill 40,000 gallons southern California, a jury verdict $12.7 for beach boating uses alone (Helton Penn, 1999). However, most are very small--in 2000 there were 8058 spills less than 100 only 77 more 1000 (U.S. Coast Guard, 2001). In all cases, government trustees (the state federal agencies designated act on behalf public safeguard resources) have right responsibility file claims recover value lost or damaged resources according NRD provisions Comprehensive Environmental Response, Compensation, Liability Act (CERCLA), Oil Pollution (OPA), related law. must conduct Resource Damage Assessments (NRDAs) support claims. This process is challenging because values associated with natural cannot obtained from market trades. economists done much address this problem developing economic approaches placing monetary consequences pollution discharges. Some (e.g., travel cost hedonic wage models) rely revealed preferences consumers place. Other analyze stated tools contingent valuation surveys. These methods supported high-profile cases Exxon Valdez accident Alaska Upper Clark Fork Basin Superfund Site Montana. (1) art type NRDA methodology impressively sophisticated. voluminous literature nonmarket techniques embodies efforts researchers made refine improve reliability accuracy these yielding consistent theory (Brookshire Scrogin, 2000). (2) also expensive time-consuming execute. For example, study estimated $3 million. Such studies therefore conducted potential large (Harrison Lesley, 1996). Most trustee agencies, however, small, budget-constrained, lightly staffed, often no board. There exist few simplified methods--tools that used person minimal training perform simple, low-cost, expedited NRDAs. paucity has opt not pursue majority cases. A developed estimate NRDs, using data physical parameters impute those damages. article sets forth theoretical arguments develop unbiased use proposes set criteria evaluate quality any method. authors then describe being some states, affording academic rare view kinds when they do hire expert consultants carry out NRDA. against discuss whether other nonstate-specific (benefit transfer Type job better. II. CONCEPTUAL ISSUES IN THE DESIGN OF SIMPLIFIED METHODS FOR Work dating back Becker (1968) emphasized liability law provide firms proper incentives engage socially beneficial precautionary activity (Segerson, …