A general theory to explain the relatively high cost of environmental restoration at DOE facilities
Environmental Restoration costs for Department of Energy (DOE) facilities have been the subject of much scrutiny and concern for several years. General opinion is that DOE clean-up costs are as much as three times higher than costs for similar clean-up projects in the private sector. Consequently, DOE Environmental Restoration professionals are continually under pressure to do more with less, which, ironically, can lead to additional inefficiencies in the system. This paper proposes a general theory as to why DOE costs are higher, explains the reasons why current conditions will make it difficult to realize any pervasive or significant decreases in clean-up costs, and presents some general changes that need to take place in the DOE system in order to bring about conditions that will allow more efficient clean-up to occur. The theory is based on a simple economic model that describes the balance between the resources spent for risk avoidance and the corresponding changes in overall productivity as a function of risk. The elementary concepts illustrated with the economic model, when refined and specifically applied, have the potential to become the catalyst for significant change-change that is absolutely necessary if we truly intend to conduct environmental clean-up with the same efficiencies as private industry.
- Research Organization:
- EG and G Idaho, Inc., Idaho Falls, ID (United States)
- Sponsoring Organization:
- USDOE, Washington, DC (United States)
- DOE Contract Number:
- AC07-94ID13223
- OSTI ID:
- 120843
- Report Number(s):
- INEL-95/00228; CONF-950868-22; ON: DE96001925; TRN: 95:024566
- Resource Relation:
- Conference: ER `95: environmental remediation conference: committed to results, Denver, CO (United States), 13-18 Aug 1995; Other Information: PBD: [1995]
- Country of Publication:
- United States
- Language:
- English
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