The benefits and costs of policies related to groundwater contamination

An examination is made of the benefits and costs of programs designed to reduce the risk of groundwater contamination from water disposal facilities. A review is presented of a conceptual framework to measure the benefits of groundwater ''protection'' policies. This framework is also expanded. The theoretical model also demonstrates the interrelationships that exist between the 3 generic types of groundwater policy: 1. containment (prevention), 2. detection (monitoring), and 3. corrective action (remedial response). The theoretical model then is applied in case studies of 3 waste disposal sites presently affecting vital aquifers. The empirical results suggest that preventing the contamination that has taken place is not unambiguously economically preferred to corrective action after the fact. The studies also demonstrate that remedial response may not always be warranted even when contamination is known to exist.