REDUCING SOIL CONTAMINATION - ECONOMIC INCENTIVES AND POTENTIAL BENEFITS

Although soil contamination has received increased attention in the EU because of the potential consequences for human health and for both a ir and water pollution, soil contaminant flows are an issue in their o wn right. Control of pollutants has high priority and has resulted in a number of directives to reduce emissions. Pesticides pose a crucial problem because these chemicals are applied to crops across the agricu ltural sector and therefore, constitute a non-point source of soil con tamination. This paper reconsiders the basic economics of contaminant flows from both private and public perspectives. Firstly, the microeco nomics of pollution control are presented, followed by a discussion of alternative policy approaches. Then the economics of restoration of d amaged natural assets are considered. The case of pesticide use in agr iculture is presented to illustrate lessons drawn from more general ec onomic theory. Estimation of costs and benefits of restoration is cons idered and the challenges it poses to policy design are discussed. A f inal section reviews the economics of public policy for the restoratio n of contaminated soils and highlights cut-rent EU policy. (C) 1998 El sevier Science B.V.