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A Proactive Approach Can Make Site Remediation Less Expensive
Authors:Gontran?F?Bage  Email author" target="_blank">Réjean?SamsonEmail author  Bernard?Sinclair-Desgagné
Institution:(1) Industrial Chair in Site Remediation and Management Department of Chemical Engineering, École Polytechnique de Montréal, P.O. Box 6079, Station “Centre-Ville” Montreal, Quebec, H3C 3A7, Canada;(2) Department of Applied Economics, École des Hautes Études Commerciales, 3000, Chemin de la Côte-Sainte-CatherineMontreal, Quebec, H3T 2A7 Canada
Abstract:Without any incentive to clean up a contaminated site, remediation is often delayed until the site owner is compelled to act by regulatory agencies. In such a context, the selected technology is typically the one that will reach the remediation goals as quickly as possible. Unfortunately, this criterion is often met by overly expensive technologies, resulting in high and sometimes unaffordable total remediation costs, leading to a remediation with a negative net benefit. This study examines the effects of time constraint and benefit value on the optimal remediation strategy for a diesel-contaminated site. This strategy is developed using the technico-economic model METEORS, which takes into account the technology’s effectiveness, the uncertainty of the level of contamination, and the possibility of reducing this uncertainty through either an additional characterization (before selecting and applying a technology) or the monitoring of the remediation technology (during its use). Results of simulations with both economic and temporal constraints support a proactive approach to site remediation.
Keywords:Optimal remediation strategy  Irreversible effect  Technology selection  Real option  Concentration uncertainty  METEORS
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