Incentives Policies to Site Hazardous Waste Facilities

This paper addresses the use of mitigation and compensation as incentives policies to stimulate agreement between parties interested in siting a hazardous waste facility and potential host communities. We develop a model of facility siting that distinguishes five key factors which influence the acceptability of a proposed facility when considered in relation to status quo conditions. This model then is used to examine the effectiveness of different incentives policies with regard to (a) mitigating the perceived risks and (b) compensating the adverse impacts of a hazardous waste facility.

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