| Abstract: | Estimates by the US Office of Technology Assessment of the costs to clean up the 1246 EPA National Priority List sites stand at more than $500 billion over the next 50 years. This cost estimate is based on existing technologies which are neither as technically advanced nor economically efficient as is necessary to realistically complete the job. However, despite the potential profits for remediation technology vendors, new and innovative technologies are not entering the market as rapidly as is needed. This is the result of major flaws in the US regulatory program, the Superfund, for dealing with the issue. Using neoclassical economic theories of technological change, the two primary obstacles to remediation technology research are identified: appropriability and market uncertainty. The conclusions reached offer valuable lessons for US policy-makers in revamping the present system. These lessons can also be applied to policy-makers in other countries as an example of how government intervention in the market can be not only inefficient, but also a hindrance for technological development. |
