How costly is "Clean"? An analysis of the benefits and costs of superfund site remediations

The cleanup of hazardous waste sites under the U.S. Environmental Protectio n Agency's Superfund program is governed by a number of legislative and reg ulatory constraints. Congress passed legislation in 1986 directing the Envi ronmental Protection Agency (EPA) to pursue permanent remedies that embodie d stringent cleanup standards. The agency has chosen to use conservative as sumptions in risk assessments at hazardous waste sites, including a presump tion that on-site risks for hypothetical future residents should be calcula ted in the site remediation process. This at-ride offers the first comprehe nsive assessment of the cost-effectiveness of these Superfund cleanups. Our results reveal that many EPA Superfund remediations fa ii a partial benefi t-cost test. For a sample of the 150 Superfund sites, we find that at the m ajority of sites the expected number of cancers averted by remediation is l ess than 0.1 cases per site and that the cost per cancer case averted is ov er $100 million. The analysis demonstrates the importance of explicitly cal culating the trade-offs embodied in environmental cleanup decisions. (C) 19 98 by the Association for Public Policy Analysis and Management.