Environmental Cost-Benefit Analysis

625 Words2 Pages
bulb-icon

Recommended: Cost benefit analysis paper

The overall goal of this cost-benefit analysis (CBA) is to determine if purchasing the manufacturing facility, cleaning up the spill, and the income generated from said building will be worth the expenditures. In other words, is the cost and effort going to payoff in the end?
To conduct an effective cost-benefit analysis a thorough study of the grounds and building where the spill occurred would need to be completed. Since we have a hypothetical of the spill and associated damage done I, as the Environmental & Safety Manager, would put together an outline or type of plan of action to ensure I cover all necessary steps necessary to conduct a thorough cost benefit analysis.
The first step in conducting the CBA is to define the problem and conduct a survey of the area. This we discussed earlier. Will the profit from the manufacturing processes eventually outweigh the cost of purchasing the building and cleaning up the spill? The survey needs to examine the characteristics of the contamination problem and associated solutions to determine what might be appropriate for a particular site, and if any further analysis requirements are necessary. There are many variables to consider in just this step of the CBA. For instance, we know the extent and degree of contamination, but we need to identify a number of possible remediation techniques to get rid of said contamination. Below are a few options of possible remedial action:
Remedial option A: Excavation of soil and disposal off-site (ex situ). Possible cut-off trench to prevent further migration.
Remedial option B: Natural bioremediation (in situ); soil vapour extraction and activated carbon treatment of emissions.
Remedial option C: Demolish the manufacturing facility, remove the main...

... middle of paper ...

...erform a cost-benefit analysis, this is used when an impact can be readily valued in an economic term. For each remediation option, the calculated money sum of benefits can then be compared to the money sum of costs to assist in the determination of whether the benefits outweigh the costs. When the benefits are greater than the costs, then an option is justified in economic terms. Therefore, the option providing the greatest level of benefits over costs, when compared to the alternative is going to be the most preferred option for site remediation.

Works Cited

DEQ. (2013). Environmental Cleanup. Retrieved from Oregon Department of Envriornmental Quality: natural bioremediation; soil vapour and water extraction; activated carbon treatment of emissions
Postle, M. F. (1999). Cost-Benefit Analysis for Remediation of Land Contamination. Bristol: Environment Agency.

Show More
Related

  • The Lowry Landfill Superfund Site

    2979 Words  | 6 Pages

    The Lowry Landfill Superfund Site is located in Arapahoe County, Colorado, approximately 2 miles east of Aurora. It consists of approximately 507 acres of waste disposal area and is operated by Waste Management of Colorado, Inc. The land surrounding the site consists of native prairie grass and a wetland located along a local creek. Sections around the site are zoned for agricultural use including cattle grazing and non-irrigated wheat farms. 1 The area is home to numerous endangered species including the bald eagle and peregrine falcon. Due to the large amounts of wastes disposed on the site between 1965 and 1980, it became extremely contaminated with a variety of inorganic and organic contaminants. From 1984 to 1993, the EPA oversaw remedial investigation and feasibility studies that were performed by all responsible parties. Since its listing as a superfund site in 1984, multiple remedial actions have been performed in order to rehabilitate the site. These include clay barrier walls around the site, a groundwater collection system, a soil cover for the main landfill, as well as a landfill gas collection system. Groundwater that is collected on the site is treated at an onsite water treatment facility. In 2007, construction began on an onsite gas to energy plant that utilizes the methane produced by the landfill site. The electricity produced by the plant is enough to power 3000 households. 1 Today, use of land and groundwater on and near the site is still restricted by the state of Colorado.1

    Read More

  • Putting a Value on Nature's Free Services

    468 Words  | 1 Pages

    cost: Measuring the economic value of a service that manpower can build to replace a service that nature provides. Ex: Mangrove Forests; pg. 8. 4th paragraph)

    Read More

  • Policy Memo Example

    507 Words  | 2 Pages

    A cost-benefit analysis is “whenever people decide whether the advantages of a particular action are likely to outweigh its drawbacks” (Benefit-Cost Analysis, n.d.). The analysis estimates the economic value placed upon a

    Read More

  • Overview of Green Washing Perpetrated by BP

    2378 Words  | 5 Pages

    Smith Jr., Lawrence C., L. Murphy Smith, and Paul A. Ashcroft. "Analysis Of Environmental And Economic Damages From British Petroleum's Deepwater Horizon Oil Spill." Albany Law Review 74.1 (2011): 563-585.Academic Search Complete. Web. 17 Feb. 2014.

    Read More

  • Bioremediation with the use of Bacteria, Serratia Marcescens

    1144 Words  | 3 Pages

    The word “remediate” means to solve a problem, so the word “bioremediation” refers to the use of biological organisms to solve an environmental problem. Bacteria, fungi, protists and other microorganisms in a non-polluted environment are constantly breaking down organic matter, and when the soil is polluted, some of the organisms may die, but others will still be able to break down the pollutants. Bioremediation provides organisms that can consume the pollutants with fertilizer, oxygen, and other conditions to encourage the rapid growth of these organisms. They then would be able to break down the organic pollutants at a correspondingly faster rate. There are two general ways in which bioremediation functions. One way is where specific survival conditions of a microorganism living in the soil are enhanced to increase the rate of a pollutant’s degradation. The second way is when specialized microbes are added to degrade the contaminant. This way is less common. For many types of polluted soil, bioremediation provides an excellent method of clean-up, but in some cases the pollutant is toxic even for the microbes. These pollutants include metals such as cadmium or lead, and salts such as sodium chloride. Although it may not work in all cases, bioremediation is considerably easier than other methods because it enhances the functions that the microbes already carry out in the soil. Along with being easier, it can be much less expensive because the soil does not have to be pumped out of the ground for treatment (Environmental Inquiry-Bioremediation). Serratia Marcescens is a bacterium that is commonly used for bioremediation.

    Read More

  • Fresh Water Scarcity in China

    2238 Words  | 5 Pages

    Before discussing Benefit-Cost Analysis in detail, the basic steps and the framework of Benefit-Cost Analysis are shown in Figure 1.

    Read More

  • Rate of Return

    1385 Words  | 3 Pages

    There is a methodical process in determining the required return. Management must decide the expected cash flows from the capital project. The firm has to also evaluate the riskiness of these cash flows. The firm then determines the cost of capital and how the cash flows will be discounted and then the required rate of return can be determined. An estimate of the assets value to the firm is determined. The project is then evaluated if it is acceptable or not. Many methods are used to determine if a project is acceptable or not. For example, the payback method, net present value, and internal rate of return. Simply put, the payback method is how many years will as it take for a firm to recover the original investment. The net present value method takes into account the time value of money by finding the value of yearly cash flows. The internal rate of return describes when the discount rate equates the present value of a projects expected costs compared to the present value or when the rate is guessed using a trial and error method and when the NPV is equal to zero, we have achieved our rate. Each method has advantages and disadvantages and managers must weigh these advantages and disadvantages.

    Read More

  • Cost-Benefit Analysis

    1103 Words  | 3 Pages

    In this day and age, we take pictures all the time since we constantly have technology at our fingertips. We can easily document our lives using our phones, webcams, and cameras. We share snippets of ourselves so often on social media like Instagram, Twitter, and Facebook and because of this, editing photos is not something only professional photographers have to do anymore. Looking for the perfect photo editor can be extremely daunting to anyone since there are so many options available, no one wants to pay a hefty price for an editor. However, since there is such a wide range of options, you can find an application that will cater to your needs and ensure that you end up with a flawless, professional-level shot. Below are some options to

    Read More

  • Pros And Cons Of Cost Benefit Analysis

    1074 Words  | 3 Pages

    Cost benefit analysis, abbreviated as CBA, is a tool derived from utilitarianism to help businesses compare the costs of carrying out and the benefits that result from a decision. It lays down a set of guidelines that help businesses compare the costs and benefits of each available option and figure out which is the best option to choose. (Velsaquez, 63) A simple scenario utilizing cost benefit analysis is judging the production value of item “x”. If the “benefits” or the revenue made from selling “x” is high enough to cover the monetary costs, the costs of the time spent on the product, and produce profit, then cost benefit analysis would state that “x” is worth making because the benefits cover the costs of the item. On the other hand,

    Read More

  • Cost Analysis And Cost Advantage

    798 Words  | 2 Pages

    According to F.John Reff, a cost analysis is use to know and determine the status of a given project, it will tell how well and how poor the

    Read More

  • Cost Benefit Analysis

    892 Words  | 2 Pages

    With the rise of students wanting to further their education comes the rise of schools increasing their tuition rates and fees. How does this affect many that have a hard time with keeping employment and or anyone for that matter? The question remains will tuition increasing effect the number of student attending universities like NSU?

    Read More

  • Environmental Economics

    1945 Words  | 4 Pages

    With the rampant deterioration of the environment taking place, panic striking and scandalizing environmental issues like global warming and greenhouse effect making banner headlines in our news papers and bulletins. Entire world is busy in devising energy reforms that can save the planet from plunging deep into the pit of destruction and catastrophe. In order to counter the looming energy crisis that is engulfing the world, research scientists all over the world are busy brainstorming their ageing heads in order to devise reliable energy systems, which can prove effective in resolving environmental disasters. (Costanza, 1991)

    Read More

  • Enviromental Impact Assessment

    905 Words  | 2 Pages

    Environmental Impact Assessment (EIA) is assessment of impacts on the environment due to proposed activity and finding ways to mitigate the environmental impacts.

    Read More

  • Biofuels and Their Effects on Water Resources

    1918 Words  | 4 Pages

    Due to desires to decrease greenhouse gas emissions, the increasing concerns of trade balances and geopolitics, as well as the growing rise of the price of crude oil, nations worldwide are taking bigger steps in establishing sustainable energy alternatives [1]. In order to meet more sustainable energy needs there has been an increase in the demand of biofuels. With this increase in demand comes the increase demand of water, which is already a limiting factor in food production in many parts of the world. Here I explore the effects of biofuel production on water sources, and how biofuels can possibly remediate degraded water resources. Although the increase production of biofuels can further exacerbate already scarce water, sustainable energy produced from biomass has a great potential to use sources of water that are considered unsuitable for consumption. The sustainability of biofuel production through the use of marginal lands can be improved through the use of degraded water resources. Nitrate contaminated ground water, as well as other degraded water resources have the potential to be used for feed stock productivity [2]. This can also lead to the restoration of contaminated water resources.

    Read More

  • The Environmental Impact Assessment (EIA)

    844 Words  | 2 Pages

    The environmental impact assessment (EIA) is generally defined as the study of the impacts of the projects, programs, and plans proposed regarding environment (Wathern, 2013). The EIA foundation was established in 1970, by the endorsement of the National Environment Policy Act (NEPA). A legal, methodological, as well as practical foundation was founded by NEPA in USA. This essay demonstrates the role of EIA, describing the types of IEA. It aims to facilitate and understand environmental impact assessment regarding the oil and gas exploration and production (Rais, 2004).

    Read More

More about Environmental Cost-Benefit Analysis

Open Document