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Can We Buy Time? Evaluation of the Government’s Directed Grant to Remediation in Sweden

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Author Info

  • Forslund, Johanna

    ()
    (National Institute of Economic Research)

  • Johansson, Per

    (National Institute of Economic Research)

  • Samakovlis, Eva

    ()
    (National Institute of Economic Research)

  • Vredin Johansson, Maria

    ()
    (National Institute of Economic Research)

Abstract

The interim targets of the Swedish environmental quality objective “A non-toxic environment” emphasize that remediation of contaminated sites should progress at a high speed. Since remediation is an expensive venture, it is valuable to gain knowledge about where in the remediation process government funding affects the pace of progress the most. In this paper we analyze how government funding, in the form of a directed grant, affects the pace of progress in four different states of the remediation process. The estimation is performed in a simultaneous sequential duration model in which a site has to exit a state to be eligible for inclusion in the following state. We control for a number of variables that may also affect the pace of the remediation process, such as the municipal tax base and the site’s level of contaminants. Although there is heterogeneity between the sites that contribute to making remediation a slow process, our analyses show that the directed grant positively affects the probability of leaving the first and third states. We identify the third state (i.e., the time between the end of a thorough risk classification and the inception of on-site remediation)as the remediation process’ bottleneck. Even if the directed grant can speed up the process in this state, the effect is minuscule compared to the amount of directed grants needed to do so.

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Bibliographic Info

Paper provided by National Institute of Economic Research in its series Working Paper with number 107.

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Length: 40 pages
Date of creation: 31 Jan 2009
Date of revision:
Handle: RePEc:hhs:nierwp:0107

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  1. Forslund, Johanna & Samakovlis, Eva & Vredin Johansson, Maria & Barregård, Lars, 2009. "Does remediation save lives? On the cost of cleaning up arsenic-contaminated sites in Sweden," Working Paper 108, National Institute of Economic Research.
  2. Hilary Sigman, 2000. "The Pace of Progress at Superfund Sites: Policy Goals and Interest Group Influence," NBER Working Papers 7704, National Bureau of Economic Research, Inc.
  3. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July.
  4. Dahlberg, Matz & Johansson, Eva, 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Working Paper Series 1999:24, Uppsala University, Department of Economics.
  5. Forslund, Johanna & Samakovlis, Eva & Johansson, Maria Vredin, 2008. "Is it wise to combine environmental and labour market policies? An analysis of a Swedish subsidy programme," Ecological Economics, Elsevier, vol. 65(3), pages 547-558, April.
  6. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
  7. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-79, June.
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Cited by:
  1. Hilary Sigman & Sarah L. Stafford, 2010. "Management of Hazardous Waste and Contaminated Land," Working Papers 104, Department of Economics, College of William and Mary.

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