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Risk, Compensation, And Regional Equity In Locating Hazardous Facilities

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  • Allen L. White
  • Samuel J. Ratick

Abstract

ABSTRACT Hazardous facility siting policies have shifted gradually from an exclusive focus on risk mitigation measures to strategies which combine mitigation unit compensation for unavoidable risks. Despite widespread practice among regional and state government entities, such strategies have achieved limited success. We argue that risk sharing through dispersion and downscaling of facilities is a key adjunct to compensation, with the potential to alleviate many stalemates which pervade current siting processes. A prescriptive risk‐sharing model, inspired by a growing number of equity‐oriented siting policies, elucidates the trade‐offs between spatial equity, compensation, and facility costs. We conclude that equity considerations are likely to emerge as a primary criterion in the next generation of siting processes.

Suggested Citation

  • Allen L. White & Samuel J. Ratick, 1989. "Risk, Compensation, And Regional Equity In Locating Hazardous Facilities," Papers in Regional Science, Wiley Blackwell, vol. 67(1), pages 29-42, January.
    • Handle: RePEc:bla:presci:v:67:y:1989:i:1:p:29-42
    DOI: 10.1111/j.1435-5597.1989.tb01180.x
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    Cited by:

    1. Michael P. Johnson & Arthur P. Hurter, 1997. "An Optimization Model for Location of Subsidized Housing in Metropolitan Areas," JCPR Working Papers 12, Northwestern University/University of Chicago Joint Center for Poverty Research.
    2. Leslie A. Nieves & Jeffery J. Himmelberger & Samuel J. Ratick & Allen L. White, 1992. "Negotiated Compensation for Solid‐Waste Disposal Facility Siting: An Analysis of the Wisconsin Experience," Risk Analysis, John Wiley & Sons, vol. 12(4), pages 505-511, December.
    3. Samuel Ratick & Brian Meacham & Yuko Aoyama, 2008. "Locating Backup Facilities to Enhance Supply Chain Disaster Resilience," Growth and Change, Wiley Blackwell, vol. 39(4), pages 642-666, December.

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