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Keywords:

  • Contaminated soil;
  • cost-benefit analysis;
  • direct benefit;
  • indirect benefit;
  • hedonic price method

Abstract

Industrial zones are the main source of soil pollution in Israel. Due to the upcoming approval of the bill on soil contamination and remediation in Israel, it is important to assess the economic feasibility of soil remediation. This study examines the economic feasibility of an extensive remediation project of all contaminated industrial zones in Israel. The estimated economic benefits include both direct benefits, resulting from the increase in the land value of the contaminated site, and indirect benefits, arising from the increase in nearby property values. A cost-benefit analysis showed a cost benefit ratio of 1:14. Nonetheless, the direct benefits were found to be lower than the costs. Thus, the question of funding requires collaboration between government and the private sector.