Perceived risk impacts from siting hazardous waste facilities

This paper describes methods for evaluating perception-based economic impacts resulting from siting hazardous waste facilities. Socioeconomic impact analysis has devoted increasing attention to the potential implications of changed public perceptions of risk due to an activity or situation. This contrasts with traditional socioecconomic impact analysis, which has been limited to measuring direct and indirect consequences of activities, e.g., the employment effects of placing a military base in a specified location. Approaches to estimating economic impacts due to changes in public perceptions are ex ante or ex post. The former predict impacts prior to the construction and operation of a facility, while the later is based on impacts that become evident only when the facility is up and running. The theoretical foundations and practical requirements for demonstrating impacts, resulting from the siting of a hazardous facility are described. The theoretical rationale supporting the study of perceived risk research is presented along with discussion of problems that arise in demonstrating the existence and measuring the quantitative importance of economic impacts due to changes in perceived risk. The high-level nuclear waste facility being considered in Nevada is presented as an example in which there is potential for impacts, but where the link between perceived risk and economic conditions has not yet been developed