THE ROLE OF COMPENSATION IN SITING HAZARDOUS FACILITIES

Empirical evidence indicates that compensation can prove effective in gaining public acceptance for siting facilities on the benign end of t he spectrum (e.g., landfills, prisons), bur is subject to serious limi tations when it comes to facilities that the public regards as particu larly risky ol of questionable legitimacy such as nuclear waste reposi tories. These facilities require creative mitigation measures such as independent inspections of the facility and local shutdown power. Even then they may be viewed as too risky to be acceptable with or without compensation. This article proposes a two-stage siting process wh ich recognizes the importance of regulations and safety standards (Stage 1) while employing a voluntary process with compensation to address co ncerns with equity and efficiency (Stage 2).