CERCLA natural resource damages: Uses and misuses of economic theory

Journal Article · · Hazardous Waste and Hazardous Materials; (USA)

DOI:https://doi.org/10.1089/hwm.1989.6.79· OSTI ID:5866424

Boland, J J ^[1]; Milliman, J W ^[2]

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1. Johns Hopkins Univ., Baltimore, MD (USA)
2. Univ. of Florida, Gainesville (USA)

Prior to CERCLA, litigation under existing tort law was widely perceived as an ineffective means of imposing penalties on discharges of hazardous waste. In drafting CERCLA, Congress created a cause of action for state and federal trustees against a broad class of defendants, and introduced the concept of natural resource damages. The intent was clearly to insure compensation for all injury, past and future, regardless of the identity of the victim. This is consistent with conventional economic analysis, which defines damage as the net diminution in the present value of all services provided by a natural resource. When the regulations implementing the Act were issued, however, they conflicted with economic theory on several grounds, misapplying some concepts and omitting others. As they now stand, the regulations severely constrain both the scope and reach of natural resource damages.

• OSTI ID: 5866424
• Journal Information: Hazardous Waste and Hazardous Materials; (USA), Journal Name: Hazardous Waste and Hazardous Materials; (USA) Vol. 6:1; ISSN 0882-5696; ISSN HWHME
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290300* -- Energy Planning & Policy-- Environment
Health
& Safety
DAMAGE
ECONOMIC ANALYSIS
ECONOMICS
HAZARDOUS MATERIALS
IMPLEMENTATION
LAWS
LIABILITIES
MANAGEMENT
MATERIALS
POLLUTION LAWS
POLLUTION REGULATIONS
REGULATIONS
RESOURCES
SUPERFUND
WASTE MANAGEMENT