Question

U.S. Supreme Court Justice Stephen Breyer's book Breaking the Vicious Circle: Toward Effective Risk Regulation examines government's role in controlling and managing the health risks society faces from exposure to environmental pollution. One major problem examined in the book is the cleanup of hazardous waste sites. Justice Breyer was extremely critical of policymakers who wish to see waste sites 100 percent clean. Explain, using the theory of optimization and a graph, the circumstances under which a waste site could be made "too clean." You may either describe your graph in detail or post a photo of your graph for the class to see. Good answers are dispassionate and employ economic analysis.

Answer 1

Step-1- *la.). cbaning a wasle site has its own costs and benifits, the same could be observed foom the fallowing illustration. The optimization theory an optional Paint is the one where the net benifit is highest. In other words, when the differnces between the the total benifit an cost is manimum the Paint which would be optaimal. A waste site could be made too clean by incussing mabr cast to cloan habaxdous waste. Howeller, the cast should be less than the benifits incussed. The fallacing afraph explains a situation of net benifit at Paint A. total cost Total benifit and costs. -Total benifi A Level of Activity

step-2;- [b]: If the health benifits of cleaning se Just a small function of the cast, this means Total cost of clooning is much greater than the benifits is loss than the morginal cost to most of the activities loval. The following graph such Situation. 750 - marginal cost Marginal benedit and marginal benefits 'Level of activity. maxainal cast * 1. After. Paint ċċ The morginal benefit. is goeks than the * is If the will be after activity incur Paint C, the fiom increased dosess. 7 - * * Thank you. ** -