Economic analysis of risk associated with hazardous waste disposal

In economic terms, risk reduction is measured as the efficient internalization of a negative externality. The premise is that the maximum social benefit of a policy is achieved when the costs and benefits of the policy are equated at the margin. The costs and benefits of reducing the social risks associated with the siting of hazardous waste disposal facilities, and the disposal methods employed, are examined in this paper, using two different analytical models.