Effects of hazardous waste risks on property transfers: legal liability vs. direct regulation

Given the probable large number of sites contaminated with hazardous wastes, there could be significant benefits from a statutory system that effectively deters future contamination and encourages private remediation of existing sites. We compare the effectiveness of Superfund liability rules with New Jersey's ECRA regulatory program to clean up contaminated sites at the time of property transfers. Our analysis indicates that regulatory delays raise private costs under ECRA relative to Superfund alone, but that external benefits of ECRA cleanup activities are greater as well. Furthermore, it is likely that unmitigated damages are less under ECRA. -Authors

Duke Scholars

Author F. Reed Johnson Population Health Sciences