By Judith D. Bentkover (auth.), Judith D. Bentkover, Vincent T. Covello, Jeryl Mumpower (eds.)
In contemporary years there was giant curiosity in advantages evaluate equipment, specifically as those tools are used to evaluate future health, safeguard, and environmental matters. at the least a part of this curiosity should be traced to government Order 12291, issued by way of President Ronald Reagan in 1981. This government Order calls for Federal businesses to accomplish advantages checks of professional posed significant laws and prohibits them from taking regulatory motion until strength advantages exceed power bills to society. Heightened curiosity in merits evaluate equipment has in tum given upward thrust to larger reputation of the inherent problems in appearing such check ments. for instance, many merits which are intuitively felt to be most vital also are one of the so much tricky to degree. it may be tricky to spot the total variety of either advantages and prices. the alternative of an appro priate cost for evaluating merits and prices through the years is proble matic. even if merits are quantifiable in precept and contract should be reached on their valuation, required d,ata will not be on hand. hence huge uncertainty is outfitted into so much gain estimates, even if they're in response to the easiest on hand facts. In gentle of the complexities and problems linked to the practice ance of a advantages evaluate, this e-book reports the present kingdom of theoretical and methodological wisdom within the box. The assessment is vast in that it covers over fifty years of study, theoretical enhance ment, and practice.
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Applied Welfare Economics and Public Policy. : Prentice-Hall. 34 V. Kerry Smith Kopp, Raymond J. and Paul R. Portney. 1983. ' In Proceedings of Workshop on Effects of Environmental Regulation on Industrial Compliance Costs and Technology Inno-. vations. : National Science Foundation. Krutilla, John V. 1961. ' Journal of Political Economy 69: 226-235. Lave, Lester B. 1981, The Strategy of Social Regulation. : Brookings Institution. Lind, Robert C. 1982. ' In Discounting for Time and Risk in Energy Policy, Robert C.
If individuals behave as if the probability is zero - that is, if they employ some type of threshold model- then it is an open question as to whether they will change their behavior if adequate information is presented to them on the true nature of the risk. If not, some type of regulation may 'be required. Kleindorfer and Kunreuther (1981) postulated that government regulation is most likely to be beneficial and acceptable where public information is inadequate, incorrect, or misunderstood. This might be the case when one is dealing with very complex products, technologies, or hazards which are unfamiliar and where the potential consequences of events with very low probabilities of occurrence are greater than previously realized by the public or by industry and government.
3. Hazardous materials management: What is the appropriate role of regulations with respect to the transport, storage, and disposal of hazardous materials? How should the government deal with existing and potentially new sites for hazardous waste? What are the costs of prevention compared with the costs of relocation and cleanup after a 35 J. D. Bentkover et al. ), Benefits Assessment: The State o/the Art, 35-50 © 1986 by D. Reidel Publishing Company, Dordrecht. Howard Kunreuther and Lisa Bendixen 36 release of waste material?