Sweet for the sour: Incentives in environmental mediation

The siting of facilities with undesirable environmental characteristics often leads to public conflict. Efforts to resolve the conflict and make siting decisions frequently exacerbate the problem. Environmental mediation, the process of negotiating an agreeable settlement, is an accepted approach to resolving conflict. This paper explores the use of incentive systems as a means of achieving equity in environmental mediation. Obnoxious and noxious characteristics of facilities are discussed as the basis of conflicts. Four types of incentives—mitigation, compensation, reward, and participation—are discussed. The paper concludes with a discussion of the utility and application of incentives for solving environmental conflicts.