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

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Listed:
  • 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.

Suggested Citation

  • Forslund, Johanna & Johansson, Per & Samakovlis, Eva & Vredin Johansson, Maria, 2009. "Can We Buy Time? Evaluation of the Government’s Directed Grant to Remediation in Sweden," Working Papers 107, National Institute of Economic Research.
  • Handle: RePEc:hhs:nierwp:0107
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    File URL: http://www.konj.se/download/18.4ee9b512150ed5e093b906e9/1447246072927/Working-Paper-107-Can-We-Buy-Time-Evaluation-of-the-Government%E2%80%99s-Directed-Grant%2Bto-Remediation-in-Sweden.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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 Papers 108, National Institute of Economic Research.
    3. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
    4. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
    5. Sigman, Hilary, 2001. "The Pace of Progress at Superfund Sites: Policy Goals and Interest Group Influence," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 315-344, April.
    6. Dahlberg, M. & Johansson, E., 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Papers 1999:24, Uppsala - Working Paper Series.
    7. 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.
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    Cited by:

    1. Hilary Sigman & Sarah Stafford, 2011. "Management of Hazardous Waste and Contaminated Land," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 255-275, October.
    2. Toshiaki Sasao, 2016. "Econometric analysis of cleanup of illegal dumping sites in Japan: removal or remedial actions?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(4), pages 485-497, October.

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