Because they are available to society, there are few economic incentives 

 within the private sector to include public resources in their planning. 



Expenditures to clean up contamination of our environment comprise major 

 costs that are currently receiving nationwide attention. Improper disposal of 

 hazardous substances is not new, yet these wastes are threatening the lives 

 and health of citizens throughout this county. Proper disposal through the 

 years would have required high initial capital outlay, but now cleanup to cor- 

 rect existing dangerous situations will cost much more. For example, in North 

 Carolina, expenditures between $2 million and $12 million might be necessary 

 to clean up PCB, a product used in manufacturing processes, that was illegally 

 dumped along roadsides at night as a cheap method of disposal. Proper dis- 

 posal of those wastes initially would have cost only about $100,000. 



More visible is the Kepone Disaster at Hopewell, VA, which could have 

 been prevented with an initial investment of $100,000. Claims against the 

 company presently total $420 million and it is doubtful whether the government 

 investment of several billion dollars will suffice to clean up the James 

 River. Perhaps the best known hazardous waste disaster is the Love! Canal in 

 Niagra Falls, NY. Dioxin and other chemicals seeped into nearby creeks, con- 

 taminated water supplies and caused high incidence of illiness (Council on 

 Environmental Quality 1981). So far $36 million has been expended for cleanup 

 there. Had the proper environmental controls been in place, an investment of 

 approximately $2 million would have made that site secure (Roy 1979). 



Pollutants entering the air and water sometimes seriously lower property 

 values. Results of a recent survey show that Los Angeles residents are will- 

 ing to pay $650 million per year, which averages about $350 per household, for 

 a 30% improvement in air quality (Roy 1979). 



High quality air and water are major factors affecting human health and 

 comfort, and are prerequisites for tourists and retirees. Severe air pollu- 

 tion clearly alters the attractiveness of an area and adversely affects 

 property values. 



Many sections of the United States depend heavily upon environmental 

 amenities (leisure and recreation) as an economic base for employment and 

 income. In 1980, tourists contributed over $17 billion to Florida's economy. 

 The climate and quality of Florida's unique natural environment are the prin- 

 cipal attractions for a majority of the visitors and retirees who emigrate to 

 Florida. 



Florida's natural resources are the foundation of its economic base 

 (Lynch 1977). For example, saltwater sport and commercial fisheries contri- 

 bute substantially to the State's economy (Bell 1979). Commercial fishing 

 supports 36,262 jobs and generates $160 million per year in final sales. In 

 Florida, saltwater sport fisheries directly and indirectly provide 118,000 

 jobs and the freshwater fisheries provide 25,000 jobs. The annual user value 

 is $1.6 billion and $493 million, respectively (Bell 1979). 



Oil spills along Florida's St. Marks River are costly (the annual loss is 

 about $329,000) because of property damage, clean-up costs and the decline in 

 sport fishing and tourism (Bell 1980). The damage from oil spill capitalized 

 at a 6.78% discount rate totals about $4.8 million annually. 



244 



