Successful Siting Incentives

by Robin Gregory, Res. Assoc.; Decision Research, Eugene, OR,
Howard Kunreuther, Dir.; The Center for Risk and Decision Processes, Univ. of Pennsylvania, Philadelphia, PA,

Serial Information: Civil Engineering—ASCE, 1990, Vol. 60, Issue 4, Pg. 73-75

Document Type: Feature article


Citizen opposition to the siting of facilities that store, produce or use hazardous materials is both widespread and problematic. There are siting incentives that have worked to allay fears and to develop tradeoffs that were accepted by the local communities. Basically there are two types of incentives: compensation and mitigation. Compensation might consist of money, the most popular and widely used incentives. There are also contingency funds set aside in the event of a plant accident or unforeseen risk. Property value guarantees are another form of compensation. Mitigation incentives can be engineering changes in the facility or replacement of lost natural resources, such as wetlands. All incentives are described in the article. Procedures during negotiation are also important and the factors that affect the development of trust are described. The significance of developer cooperation and meaningful citizen participation are part of the procedural process. Issues of equity and efficiency are also discussed, and examples of successful use of incentives in siting deliberations are given.

Subject Headings: Hazardous materials | Accidents | Risk management | Natural resources | Wetlands (fresh water) | Negotiation | Team building

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