THE ROLE OF SOCIAL DISTRUST IN RISK-BENEFIT ANALYSIS - A STUDY OF THESITING OF A HAZARDOUS-WASTE DISPOSAL-FACILITY

Distrust of social institutions is becoming an important component of risk communication and policy analysis. To assess the impact of social distrust on decision making, we examine the role of distrust of infor mation sources on the willingness to accept a hazardous waste disposal facility in one's neighborhood. Using a prospective-reference utility model, distrust of information sources is analyzed a possible influen ce on individual choice in a risk-benefit tradeoff. Using contingent v aluation survey data on the siting of a hazardous waste disposal facil ity we find that respondents are particularly distrustful of both gove rnmental officials and waste disposal businesses. We find that social distrust increases the perceived risk of a facility and influences the likelihood of accepting a referendum to site a hazardous waste dispos al facility. The level of compensation offered in the contingent valua tion scenario also is found to influence a respondent's risk perceptio n.