Financing Mechanisms for Addressing Remediation of Site Contamination
Industrial and commercial facilities provide great economic benefit to communities throughout the world. Unfortunately, many industries use or have used practices and materials which have proven toxic to the environment and to those who live and wo...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/ http://hdl.handle.net/10986/21098 |
| Summary: | Industrial and commercial facilities
provide great economic benefit to communities throughout the
world. Unfortunately, many industries use or have used
practices and materials which have proven toxic to the
environment and to those who live and work near contaminated
sites. The definition and degree of contamination varies at
national and regional levels of government, but leaders
throughout the world now recognize the hazard that
contaminated industrial and service sites present to the
wellbeing of their communities and seek innovative ways to
finance the remediation of these challenging sites.
Industrial contamination can have a severe, direct impact on
adjacent communities. The cleanup and redevelopment of a
so-called brownfield can improve a community s economy,
provide an opportunity for habitat restoration, and create
public space. Cleanup and redevelopment of brownfields can
be an effective economic development strategy, with benefits
seen in two timeframes. First, there is an immediate and
one-time capital expenditure for cleanup activities,
infrastructure, and construction. The initial investment
generates tax revenues, temporary family-wage jobs, and
indirect economic benefits within the community. Secondly,
there is a long-term economic impact from remediation
projects in the form of higher property values, long-term
tax revenues, and the attraction of external capital to the
community by tenants of the revitalized property. The
economic benefit of contaminated site redevelopment is
perhaps most clearly illustrated by permanent job creation
from the restored properties. The deleterious effects of
industrial contamination across all facets of a community
typically provide a strong incentive for leaders to seek
financing mechanisms that make site remediation possible. |
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