Economics of Environmental Remediation

23 Jun
2016

Economic Report to the Governor and Legislature of Washington
Washington Pollution Liability Insurance Agency
August 2015 – January 2016

Integrative Economics led a team investigating the economic aspects of the state’s role in cleaning up pollution caused by leaking petroleum storage tanks.

The Washington State Pollution Liability Insurance Agency (PLIA) is working to roll out an innovative approach to help the state’s retail gasoline stations clean up site contamination, replace aging infrastructure, and remain in compliance with strict federal and state environmental requirements.

Integrative Economics conducted an economic and financial analysis of a proposal to fund these activities through a revolving loan fund. This program is designed to remedy a market failure: otherwise viable businesses are unable to obtain the insurance coverage necessary for them to remain in business, but also also unable to obtain loans to remedy the problems preventing them from obtaining insurance in the first place.

The project featured an evaluation of the economic impacts of increasing the pace of cleanup activities on neighboring communities and drinking water systems, in terms of reduced risks to human health, water system operations, and property values.

You can view the report here: http://www.plia.wa.gov/PLIA_Economic_Impacts_Report.pdf