Socioeconomic assessment guidance report: Determining the effects of amenity characteristics on business location decisions

Evaluating perception-based impacts of hazardous waste facilities has become an increasingly important part of socioeconomic impact assessments in recent years. One area of discussion has been the potential effect of risk perceptions on business location decision making. This report evaluates the importance of environmental amenities (broadly defined to include natural, cultural, and recreational features; environmental quality; and other indexes of quality of life) with respect to decisions on locating both manufacturing and business service activities. It discusses the major theoretical and empirical issues that arise in attempting to determine the effects of environmental amenities on the location choices for businesses and business activities. This discussion is followed by a survey of major findings from the academic literature and a review of research by the state of Nevada. A number of recommendations for further research are also provided to help the US Department of Energy`s Office of Civilian Radioactive Waste Management better understand the importance of perception-based impacts in business location decision making and estimate the scale of socioeconomic impacts that would result from siting a high-level waste repository in Nevada