The Economics Of Groundwater Remediation And Protection

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ISBN: 9781566706438 | 1566706432
Cover: Hardcover
Copyright: 12/20/2004

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Economic literature is often too theoretical for engineers and policymakers to put into practical use, while scientific literature on the remediation of contaminated aquifers rarely considers costs and benefits. Written by a hydrogeologist and an economist, The Economics of Groundwater Remediation and Protection integrates economics and cost-benefit analysis tools with optimal protection and remediation strategies for groundwater resources.The book provides a thorough introduction of the concepts of groundwater flow and contaminant transport, and the basics of economic decision making techniques. It illustrates the types of risks and impacts caused by groundwater contamination, and the economic benefits of its remediation. The volume reviews a wide range of issues such as cost, implementation, and expectations of success for the latest remediation trends and techniques. The book shows how economic analysis can be used to determine how much we should pay for groundwater clean-up, and when spending too much - or too little - actually makes us all worse-off. The authors' step-by-step methodology for decision-making focuses on determining optimal remedial objectives, from containment to extensive cleanup, and the selection of least-cost alternatives. They use examples from their personal experience to illustrate the methodologies in action and put the issues into perspective.Combining the theoretical and practical aspects of science, policy, and economics, this book places the importance of groundwater remediation in the context of environmental economics, protection, and preservation. The Economics of Groundwater Remediation and Protection is also an excellent introduction to innovative solutions for funding remediation projects, education, and incentive programs, such as mitigation banking, land pollution credit schemes, and conservation credit alternatives.

Series Statement

vii

Series Foreword

Preface

PART I Introduction

(88)

Chapter 1 The Case for Rational Environmental Decisions

(10)

1.1 The Challenge of Environmental Protection

(1)

1.2 Water

(4)

1.3 Groundwater in Context

(1)

1.4 Sustainability, Optimality, and Intervention

(1)

1.5 Organization of the Book

(2)

References

(2)

Chapter 2 Contaminated Groundwater - A Global Issue

(14)

2.1 A Nontechnical Introduction to Groundwater Contamination

(5)

2.2 The Regulatory Perspective

(7)

2.2.1 U.S. Regulations

(3)

2.2.1.1 Superfund

(1)

2.2.1.2 The Resource Conservation and Recovery Act (RCRA)

(1)

2.2.1.3 Enforcement

(1)

2.2.1.4 Groundwater Protection and Remediation

(1)

2.2.2 U.K. Regulations and Guidance

(5)

2.2.2.1 Groundwater and CBA

(1)

2.2.2.2 Brownfield Redevelopment

(2)

References

(2)

Chapter 3 Groundwater Contamination, Risk, and Remediation

(38)

3.1 Introduction

(1)

3.2 The Issues

(5)

3.2.1 Context

(1)

3.2.2 Sources of Contamination

(3)

3.2.3 Differing Stakeholder Perspectives: Industry, Government, and Society

(1)

3.3 Contamination of the Subsurface Environment - An Overview

(17)

3.3.1 Soils, Rock, Geologic Structure

(1)

3.3.2 The Hydrologic Cycle

(3)

3.3.3 Hydrogeology and Groundwater Contamination

(13)

3.3.3.1 Groundwater Hydrology

(2)

3.3.3.2 Contaminant Hydrogeology

(4)

3.3.3.3 Nonaqueous Phase Liquids (NAPLs) in the Subsurface

(7)

3.4 Risk Assessment - Gauging the Impacts of Pollution

(5)

3.4.1 Background

(1)

3.4.2 Source, Pathway, and Receptor Concept

(1)

3.4.3 The Components of a Risk Assessment

(3)

3.4.3.1 The Conceptual Model

(1)

3.4.3.2 Site Investigation

(1)

3.4.3.3 Fate and Transport Modeling

(1)

3.4.3.4 Toxicological Assessment

(2)

3.4.3.5 Risk Quantification

(1)

3.4.3.6 Communication

(1)

3.5 Groundwater Remediation and Aquifer Protection

(8)

3.5.1 A Rational Approach to Groundwater Contamination

(1)

3.5.2 Remediation Technologies

(4)

3.5.2.1 History and Trends

(1)

3.5.2.2 Regulatory Trends

(1)

3.5.2.3 Remedial Technology Selection

(1)

3.5.2.4 Advancements in Remedial Technologies

(2)

3.5.3 Example - In Situ Remediation of Hydrocarbons Using Soil Vapor Extraction

(1)

3.5.4 Example - Horizontal Wells for Groundwater Remediation

(2)

References

(3)

Chapter 4 Economic Value of Groundwater - An Introduction

(24)

4.1 Economic Value of Groundwater - Basic Concepts

(15)

4.1.1 Total Economic Value

(1)

4.1.2 Measuring Total Economic Value

(11)

4.1.2.1 Actual Market Value

(1)

4.1.2.2 Market Price Proxies

(1)

4.1.2.3 Surrogate Market Techniques

(1)

4.1.2.4 Hypothetical Market Techniques

(1)

4.1.2.5 Using Economic Value Estimates-Benefits Transfer

(5)

4.1.3 Using the Total Economic Value Information in Decision Making

(2)

4.1.3.1 Cost-Benefit Analysis

(1)

4.1.3.2 Cost-Effectiveness Analysis

(1)

4.1.3.3 Multicriteria Analysis

(1)

4.2 Economic Value of Groundwater - Review of Literature

(7)

4.2.1 Studies Using Actual Market Value Techniques

(1)

4.2.2 Studies Using Surrogate Market Value Techniques

(1)

4.2.3 Studies Using Hypothetical Market Value Techniques

(4)

4.2.4 Summary

(2)

References

(2)

PART II Applying Economics to Groundwater

(76)

Chapter 5 Overview of Economic Analysis

(22)

5.1 Project Implementation Framework and Economic Analysis

(3)

5.1.1 Stakeholder Participation

(1)

5.2 Cost-Benefit Analysis

(11)

5.2.1 Definition of Costs and Benefits

(1)

5.2.2 Costs and Benefits over Time

(2)

5.2.3 Comparing Costs and Benefits

(3)

5.2.4 Risk, Uncertainty, and Sensitivity Analysis

102

(3)

5.2.4.1 Risk

102

(1)

5.2.4.2 Uncertainty

103

(2)

5.3 Applying Cost-Benefit Analysis

105

(3)

5.3.1 Financial vs. Economic Analysis

105

(2)

5.3.2 Obstacles to Wider Use of Cost-Benefit Analysis

107

(7)

5.3.2.1 Philosophy and Content

107

(1)

5.3.2.2 Process

108

(1)

5.4 Cost-Effectiveness Analysis

108

(1)

5.5 Other Appraisal Approaches

109

(3)

References

112

(1)

Chapter 6 Groundwater in an Economic Context

113

(12)

6.1 Overview

113

(1)

6.2 Remedial Objectives, Approaches, and Technologies

113

(1)

6.3 Groundwater, Risk, and Uncertainty

114

(3)

6.3.1 Risk

114

(1)

6.3.2 Uncertainty and Multiple Risk Linkages

115

(2)

6.4 Time and Scale

117

(2)

6.4.1 Groundwater Flows

117

(1)

6.4.2 Scale of Groundwater Issues

118

(1)

6.4.3 Cumulative Impacts

119

(1)

6.5 Groundwater Quality and Quantity

119

(1)

6.6 Irreversibility

120

(2)

6.6.1 Irreversible Aquifer Damage

120

(1)

6.6.2 Example: NAPLs in Fractured Aquifers

120

(2)

References

122

(3)

Chapter 7 Economic Theory for Groundwater Remediation

125

(16)

7.1 Conceptual Frameworks for Benefits Assessment

125

(4)

7.2 Benefits and Costs of Groundwater Remediation when Contamination and Damage Are Known

129

(7)

7.2.1 Benefits - Prevention Only

129

(2)

7.2.2 Benefits - Prevention and Remediation

131

(1)

7.2.3 Net Benefits

132

(2)

7.2.4 Discounting

134

(2)

7.3 Benefits and Costs of Groundwater Remediation when Contamination and Damage Are Not Known

136

(3)

7.3.1 Monitoring

136

(1)

7.3.2 Benefits with Uncertainty - Expected Utility

137

(2)

References

139

(2)

Chapter 8 Remedial Costs

141

(16)

8.1 Background: Remedial Technology Costs and Cost Comparisons

141

(4)

8.1.1 Semantics

141

(1)

8.1.2 Communication between Disciplines

142

(1)

8.1.3 Literature Review - Costs of Groundwater Remediation

143

(1)

8.1.4 Private Costs of Remediation

144

(1)

8.2 External Costs of Remediation

145

(11)

8.2.1 Overview

145

(1)

8.2.2 Net Benefits and External Costs

146

(9)

8.2.2.1 Planned External Costs

147

(1)

8.2.2.2 Example: External Costs of Transport to Landfill

148

(4)

8.2.2.3 Unplanned External Costs

152

(1)

8.2.2.4 Example: Accidental Piercing of Basal Containment Layer

153

(2)

8.2.3 Pollution Liability Insurance

155

(1)

References

156

(1)

Chapter 9 Remedial Benefits

157

(8)

9.1 Private (Internal) Benefits

157

(2)

9.2 Public (External) Benefits

159

(2)

9.3 Example - Property Value Increase as a Result of Remediation

161

(1)

9.4 Time

162

(1)

9.5 Education

163

(1)

References

164

(1)

PART III Remedial Decision Making

165

(36)

Chapter 10 Context

167

(8)

10.1 Levels of Decision Making

167

(4)

10.1.1 Policy Objective Level

167

(1)

10.1.2 Remedial Objective Level

168

(2)

10.1.3 Remedial Approach Level

170

(1)

10.1.4 Remedial Technology Selection Level

171

(1)

10.2 Developing an Assessment Framework

171

(4)

10.2.1 Requirements

171

(2)

10.2.2 Framework Overview

173

(2)

Chapter 11 Setting an Optimal Remedial Objective

175

(6)

11.1 Introduction

175

(1)

11.2 Step Al: Screen Objectives - Develop Short-List

175

(5)

11.2.1 Step A1-1: Identification of a Clear Remedial Objective or Objectives

177

(1)

11.2.2 Step A1-2: Identification of a Mandated Remedial Objective

178

(1)

11.2.3 Step A1-3: Identification of Clearly Unacceptable Remedial Objectives

179

(1)

11.2.4 Step A1-4: Preliminary Constraints Analysis

179

(1)

11.2.5 Step A1-5: Objective Short-List Development

180

(1)

Reference

180

(1)

Chapter 12 Reaching the Objective

181

(20)

12.1 Introduction

181

(1)

12.2 Step A2: Determine Approach Short-List for Each Objective

181

(3)

12.2.1 Step A2-1: List Possible Remedial Approaches

181

(1)

12.2.2 Step A2-2: Identify Clear or Mandated Approaches

181

(1)

12.2.3 Step A2-3: Identify Clearly Inappropriate Approaches

182

(1)

12.2.4 Step A2-4: Identify and Apply Constraints

182

(1)

12.2.5 Step A2-5: Develop Approach Short-List

183

(1)

12.2.6 Step A2-6: Determine Relationships between Multiple Objectives

183

(1)

12.3 Step B1: Assess High-Level Benefits Function for Each Objective/Approach

184

(7)

12.3.1 Step B1-1: Link with Risk Assessment

185

(1)

12.3.2 Step B1-2: List Possible Benefits for Each Objective/Approach

185

(2)

12.3.3 Step B1-3: Identify and Value Readily Quantifiable Benefits

187

(1)

12.3.4 Step B1-4: Develop Threshold Benefit-Time Function

188

(2)

12.3.5 Step B1-5: Identify and Assess Nonquantifiable Benefits

190

(1)

12.3.6 Step B1-6: Apply Nonquantified Benefits

190

(1)

12.4 Step B2: Assess High-Level Cost Function for Each Approach

191

(2)

12.4.1 Step B2-1: Select Likely Least-Cost Technology to Achieve Approach

191

(1)

12.4.2 Step B2-2: Determine Broad Cost-Time Function

192

(1)

12.4.3 Step B2-3: Qualify Probability of Success of Each Approach

192

(1)

12.5 Step B3: Determine Economically Optimal Approach for Each Objective

193

(2)

12.6 Step C: Conduct High-Level Partial CBA on Each Objective Option

195

(1)

12.7 Step D: Technology Selection Process

195

(4)

12.7.1 Step D1: Technology Short-List

196

(1)

12.7.2 Step D2: Detailed Constraints Analysis

196

(1)

12.7.3 Step D3: Develop Technology Life-Cycle Cost Curves

196

(1)

12.7.4 Step D4: Evaluation of Alternatives

197

(2)

12.8 Discussion

199

(1)

References

200

(1)

PART IV Case Studies

201

(108)

Chapter 13 Remediation of a Manufactured Gas Plant Site in the United Kingdom

203

(62)

13.1 Overview

203

(4)

13.1.1 Site Description

203

(1)

13.1.2 Geology

204

(1)

13.1.2.1 Made Ground

204

(1)

13.1.2.2 Superficial Deposits

204

(1)

13.1.2.3 Sherwood Sandstone Group

204

(1)

13.1.2.4 Middle Permian Marl

204

(1)

13.1.2.5 Lower Magnesian Limestone

205

(1)

13.1.3 Hydrogeology

205

(2)

13.1.3.1 Made Ground and Superficial Deposits

205

(1)

13.1.3.2 Sherwood Sandstone

205

(1)

13.1.3.3 Lower Magnesian Limestone

206

(1)

13.1.3.4 Hydrology

206

(1)

13.2 Assessment of Contamination

207

(1)

13.2.1 Groundwater

207

(1)

13.2.2 Soil and Vapor

207

(1)

13.3 Hybrid Site Risk Assessment

207

(3)

13.3.1 Preliminary Qualitative Risk Assessment

207

(3)

13.3.1.1 Groundwater Modeling

208

(1)

13.3.1.2 Model Aims

208

(1)

13.3.1.3 Model Results

208

(1)

13.3.1.4 Vapor Modeling-Aqueous Phase Partitioning

209

(1)

13.3.1.5 Vapor Modeling - NAPL Phase Partitioning

210

(1)

13.4 Application of CBA to Example Site

210

(35)

13.4.1 Step A1: Development of Remedial Objective Short-List

210

(4)

13.4.1.1 Clear, Mandated, or Unacceptable Objectives

210

(4)

13.4.1.2 Constraints Analysis

214

(1)

13.4.1.3 Objective Short-List Development

214

(1)

13.4.2 Step A2 Determine Approach Short-List for Each Objective

214

(11)

13.4.2.1 Available Remedial Approaches

215

(1)

13.4.2.2 Develop Short-List of Remedial Approaches

215

(4)

13.4.2.3 Relationships among Multiple Objectives

219

(6)

13.4.3 Step B1 High-Level Benefits of Each Objective/Approach

225

(10)

13.4.3.1 Link with Risk Assessment

225

(1)

13.4.3.2 Possible Benefits of Each Objective/Approach

225

(6)

13.4.3.3 Identify and Assess Quantifiable Benefits

231

(1)

13.4.3.4 Develop Threshold Benefit-Time Function

232

(1)

13.4.3.5 Identify and Assess Nonquantifiable Benefits

233

(1)

13.4.3.6 Apply Nonquantified Benefits

234

(1)

13.4.4 Step B2 Assess High-Level Cost Function for Each Approach

235

(1)

13.4.4.1 Select Likely Least-Cost Technology to Achieve Approach

235

(1)

13.4.4.2 Qualify Probability of Success of Each Approach

235

(1)

13.4.5 Step B3 Determine Economically Optimal Approach for Each Objective

235

(2)

13.4.6 Step C Conduct High-Level CBA

237

(8)

13.5 Sensitivity Analysis

245

(8)

13.5.1 Discount Rate

246

(1)

13.5.2 Timing of Remediation

247

(3)

13.5.3 Value of Groundwater

250

(2)

13.5.4 Mobile Plume Scenario

252

(1)

13.5.5 External Costs of Remediation

253

(1)

13.6 Uncertainty and Limitations

253

(2)

13.7 Appendix - Groundwater Modeling

255

(9)

13.7.1 Background

255

(1)

13.7.2 Objectives

255

(1)

13.7.3 Model Description

255

(1)

13.7.3.1 Model Code

255

(1)

13.7.3.2 Model Parameters

256

(1)

13.7.4 Model Results

257

(1)

13.7.4.1 Model Representation of Hybrid Site

257

(1)

13.7.4.2 Additional Off-Site Source (Run 2)

258

(1)

13.7.4.3 Non--Hard Covered Site (Run 3)

259

(1)

13.7.4.4 Reduced Effective Porosity (Run 4)

259

(1)

13.7.4.5 Reduced Vertical Hydraulic Conductivity of Sandstone (Run 9)

259

(2)

13.7.4.6 PWS Well Close to Site (Run 10)

261

(1)

13.7.4.7 Volume of Aquifer Rendered Unfit for Drinking-Water Abstraction (Runs 11, 16, and 17)

262

(1)

13.7.4.8 Effects of Remediation (Runs 12 to 15)

263

(1)

13.7.4.9 Shallow Source Removal (Run 12)

263

(1)

13.7.4.10 Shallow Source Removal and Source Reduction in Sandstone (Runs 13 and 14)

263

(1)

13.7.4.11 Complete Removal of Source (Run 15)

264

(1)

13.7.5 Discussion

264

(1)

References

264

(1)

Chapter 14 MtBE-Contaminated Aquifer in the United States

265

(4)

14.1 Setting

265

(1)

14.2 Benefits of Remediation - Avoidance of Expected Damages

265

(1)

14.3 Remedial Approach Analysis

266

(1)

14.4 Cost-Benefit Analysis

267

(1)

14.5 Summary - Decision Making

268

(1)

Chapter 15 Tritium-Contaminated Groundwater

269

(28)

15.1 Background

269

(1)

15.1.1 Site Description

269

(1)

15.1.1.1 Geology

269

(1)

15.1.1.2 Hydrogeology

269

(1)

15.1.2 Assessment of Contamination

270

(1)

15.1.2.1 Source of Tritium

270

(1)

15.1.2.2 Groundwater

270

(1)

15.1.2.3 Soils

270

(1)

15.2 Risk Assessment

270

(1)

15.2.1 Health Effects from Tritium Exposure

270

(1)

15.2.2 Source Analysis

271

(1)

15.2.3 Pathways and Receptors

271

(1)

15.3 Remedial Objectives and Approaches

271

(4)

15.3.1 Method

271

(1)

15.3.2 Constraints Analysis

272

(1)

15.3.3 Short-List of Remedial Approaches

272

(3)

15.4 High-Level Benefits Analysis

275

(6)

15.4.1 Context

275

(1)

15.4.2 Link with Risk Assessment

276

(1)

15.4.3 Possible Benefits of Each Approach

276

(2)

15.4.4 Identification and Valuation of Readily Quantifiable Benefits

278

(1)

15.4.5 Identify and Assess Nonquantifiable Benefits

279

(1)

15.4.6 Benefits Summary

280

(1)

15.5 Cost Analysis

281

(4)

15.5.1 Approach Sl - Complete Source Removal (Site Landfill)

282

(1)

15.5.2 Approach SlP - Partial Source Removal (Site Landfill)

282

(1)

15.5.3 Approach Pl - Removal and Treatment of Groundwater

283

(1)

15.5.3.1 Groundwater Modeling

283

(1)

15.5.3.2 Treatment System

283

(1)

15.5.4 Approach MNA - Institutional Management Option

284

(1)

15.5.5 Approach P2PR - Experimental Research Approach

284

(1)

15.5.6 Approach Rl - Collection at the River

285

(1)

15.5.7 Cost Estimate Summary

285

(1)

15.6 Cost-Benefit Analysis

285

(9)

15.6.1 Results

285

(3)

15.6.2 Discussion

288

(2)

15.6.3 Sensitivity Analysis

290

(7)

15.6.3.1 Discount Rate

290

(1)

15.6.3.2 Timing of Remediation

291

(1)

15.6.3.3 High Benefits Valuation Scenario

292

(1)

15.6.3.4 Results

292

(2)

15.7 Uncertainty and Limitations

294

(1)

15.8 Summary

295

(1)

Reference

296

(1)

Chapter 16 Example Problem and Solution

297

(12)

16.1 Introduction

297

(1)

16.2 Site Background

297

(2)

16.2.1 Setting and History

297

(1)

16.2.2 Contamination

298

(1)

16.2.3 Risk Assessment (Base Case)

298

(1)

16.2.4 Stakeholders

299

(1)

16.3 Problem Formulation and Data

299

(3)

16.3.1 The Problem

299

(1)

16.3.2 Indicative Remedial Costs

300

(1)

16.3.3 Indicative Benefit Estimates

301

(1)

16.3.4 Questions

302

(1)

16.4 Solution

302

(7)

PART V Summary and Conclusions

309

(16)

Chapter 17 Summary and Conclusions

311

(14)

17.1 Summary

311

(10)

17.1.1 Groundwater Resources in Context

311

(1)

17.1.2 Legislation

312

(1)

17.1.3 Risks from Groundwater Contamination

312

(1)

17.1.4 Groundwater Remediation

313

(2)

17.1.5 The Economic Value of Groundwater

315

(2)

17.1.6 Economic Analysis of Groundwater Remediation

317

(1)

17.1.7 Remedial Costs

318

(1)

17.1.8 Remedial Benefits

319

(1)

17.1.9 Using Cost-Benefit Analysis for Remedial Decision Making

320

(1)

17.2 Conclusions

321

(4)

17.2.1 Level of Effort

321

(1)

17.2.2 Interdependency of Site Remediation and Groundwater Remediation

321

(1)

17.2.3 Effect of Discount Rate

321

(1)

17.2.4 Effect of Deferral

322

(1)

17.2.5 Further Research on the Economic Value of Aquifers

322

(1)

17.2.6 Use and Limitations

323

(2)

Glossary of Economic Terms

325

(2)

Index

327

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The Economics Of Groundwater Remediation And Protection

Summary

Table of Contents

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