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Regulation of Leaking Underground Storage Tanks: Policy Enforcement and Unintended Consequences

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  • Arthur Sementelli

    (Cleveland State University)

  • Robert A. Simons

    (Cleveland State University)

Abstract

Public and private developers and planners often encounter environmental contamination caused by leaking underground storage tanks (LUSTs) when redeveloping previously used urban lands (brownfields). This article addresses the process by which underground storage tanks (USTs) are regulated, how leaks are discovered, and the proportion of serious leak incidents with groundwater contamination. Empirical case-study evidence of 429 leaking tank sites in Cuyahoga County, Ohio, describes the severity of leaks, how they were discovered, and the effect of a No Further Action status, which was minimal. Programmatic failure of the state regulatory agency may be partly responsible for this lower transaction rate and may partially contribute to many closed tank locations and inadvertent loss of jobs. Trends in liability reduction for USTs may change this in the near future.

Suggested Citation

  • Arthur Sementelli & Robert A. Simons, 1997. "Regulation of Leaking Underground Storage Tanks: Policy Enforcement and Unintended Consequences," Economic Development Quarterly, , vol. 11(3), pages 236-248, August.
  • Handle: RePEc:sae:ecdequ:v:11:y:1997:i:3:p:236-248
    DOI: 10.1177/089124249701100307
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    Cited by:

    1. Guignet, Dennis B. & Martinez-Cruz, Adan L., 2018. "The impacts of underground petroleum releases on a homeowner's decision to sell: A difference-in-differences approach," Regional Science and Urban Economics, Elsevier, vol. 69(C), pages 11-24.
    2. Paolo Rosato & Anna Alberini & Valentina Zanatta & Margaretha Breil, 2010. "Redeveloping derelict and underused historic city areas: evidence from a survey of real estate developers," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(2), pages 257-281.
    3. Anna Alberini, 2007. "Determinants And Effects On Property Values Of Participation In Voluntary Cleanup Programs: The Case Of Colorado," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 415-432, July.
    4. Guignet, Dennis & Alberini, Anna, 2008. "Voluntary Cleanups and Redevelopment Potential: Lessons from Baltimore, Maryland," Sustainability Indicators and Environmental Valuation Working Papers 46548, Fondazione Eni Enrico Mattei (FEEM).
    5. Jeffrey Zabel, 2007. "The Impact of Imperfect Information on the Transactions of Contaminated Properties," NCEE Working Paper Series 200703, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jan 2007.

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