Premium
Revealed preferences of a state bureau: Case of New Mexico's underground storage tank program
Author(s) -
Berrens Robert P.,
Bohara Alok K.,
Baker Amy,
Baker Ken
Publication year - 1999
Publication title -
journal of policy analysis and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.898
H-Index - 84
eISSN - 1520-6688
pISSN - 0276-8739
DOI - 10.1002/(sici)1520-6688(199921)18:2<303::aid-pam6>3.0.co;2-f
Subject(s) - government (linguistics) , business , underground storage tank , federalism , state (computer science) , control (management) , public policy , argument (complex analysis) , public administration , public economics , environmental planning , economics , economic growth , political science , engineering , storage tank , law , environmental science , waste management , biochemistry , philosophy , linguistics , chemistry , management , algorithm , politics , computer science
Leaking underground storage tanks (USTs) are a pervasive national environmental problem. Cleanup of leaking USTs is largely publicly financed and under the control of state agencies. In the transition to new compliance standards, individual states have taken advantage of provisions in federal regulations to implement their own programs. This raises the policy question of environmental federalism and the appropriate locus of government control. The objectives of this study are to examine the revealed preferences of a state UST bureau. New Mexico was one of the first state programs to use risk assessments in setting funding priorities. We analyze the statistical determinants of funding decisions and find strong evidence that risk information is used. Although our case study provides a measure of support for state control, the argument is strengthened if public financing is limited to the cleanup of historical pollution, rather than a means for providing insurance for prospective pollution. ©1999 by the Association for Public Policy Analysis and Management.