Are Risk-Benefit Tradeoffs Possible in Siting Hazardous Facilities?

摘要: Ever since Alfred Marshall introduced the notion of consumer's surplus into literature as a measure well-being, economists have been interested in determining amount compensation required to leave individuals indifferent between status quo and new situation where less commodity can be consumed (for example, due an increase prices). The Hicksian Kaldor-Hicks criteria specifying variations may appropriate for normal market goods there is wellspecified demand curve. analysis applicable dealing with environmental resources elements risk are involved, or exist public good features that make it difficult estimate people's values different amenities (V. Kerry Smith, 1989). This paper investigates question role providing benefits host community (possibly form compensation) play improving chances siting facility perceived potentially hazardous. In Section I, we develop simple twoperiod expected utility model explain preferences benefit packages. empirical examining predictive power this will related following problem current interest: U.S. Congress attempting locate site storing high-level radioactive waste from commercial nuclear plants United States. An underground repository constructed 2000 feet below earth's surface purpose permanently shipped casks around country. Once filled capacity, would sealed minimize any radiation leakage. Based on results telephone survey residents Nevada regarding their attitudes toward repository, suggest ways might modified take account behavioral factors not normally considered part individual models choice under uncertainty. These useful when tool facilitating process.