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Section 2: Policy, protection and vulnerability |
Komex Clarke Bond Ltd., 129 Cumberland Road, Bristol BS1 6UY, UK
Most activities associated with production of goods and services in modern society are linked directly or indirectly to the production of wastes and pollution. In general, environmental impacts increase with the level of production (as measured by the Gross National Product, or GNP). The decision to remediate a contaminated site can be seen from the macroeconomic and microeconomic viewpoints. Macroeconomics can be used to plan and account for the overall cost of pollution as part of a firm's production, and thus make overall decisions on the real cost of pollution and the level of clean-up that may be called for. Valuation of damaged resources, option values and intrinsic worth is an important part of this process. Once the decision to remediate has been taken, the question becomes how best to remediate. It is safe to say that cost is one of the single most important factors in site clean-up decision making. A basic rule of remediation is often taken to be the maximization of contaminant mass removed for the money spent. However, remediation may also be governed by other objectives and constraints. In some situations, minimization of time, rather than cost, could be the constraint. Evaluation of the economics of a clean-up project is directly linked to the objectives of the site owner, and the constraints within which the remediation is to be performed. Once objectives and constraints have been clearly identified, a range of possible remedial approaches and technologies can be developed, and each option evaluated on a comparative basis. One of the most powerful tools for comparative options analysis is technical-economic analysis. This approach combines evaluation of technical feasibility and effect, with consideration of capital, operation and maintenance costs over a selected time horizon. By constraining remedial alternatives within cost and time boundaries, possible solutions can be evaluated with respect to specific criteria. Two examples illustrate these concepts. Economic analysis of remedial options for containment of a 350 000 1 hydrocarbon spill migrating through fractured rock into a river in Alberta, Canada, provided clear direction to the site owner. Economic analysis of remedial alternatives for contaminated sites in the UK sheds interesting light on the common practice of landfilling, when compared to other alternatives.
