The overall goal of doing an economic analysis is:
- to develop and implement a simplified economic evaluation process to help decision-makers assess whether implementing risk management measures at POPs (and other hazardous substance) contaminated sites represents a sound allocation of public resources; and,
- to assess whether the benefits expected from such mitigation measures would, at a minimum, cover the costs.
To obtain these goals, the ideal approach to the economic analysis was reformulated to address the following:
Given the costs of the various risk management scenarios, how significant do the positive health impacts need to be to ensure the scenario would pass the cost–benefit analysis test where Net-Present-Value (NPV) > 0?
The key steps of the methodology employed are as follows:
- Risk Management Scenario Development;
- Benefit Valuation; and
- Forming Conclusions.