As an aide to Governor Blabla, you are given the task of recommending whether the state should locate a low-level nuclear waste facility in a rural county. The nuclear industry provides you with a cost-benefit study it has conducted, and it contains the following information: COST-BENEFIT SUMMARY FOR PROPOSED WASTE FACILITY Prepared by the Center for the Objective Study of Nuclear Issues Conclusion: The project will result in net benefits of $3 billion, with a benefit-cost ratio of 13. While these figures, of course, depend on the assumptions of the study, the very large net benefit figure, along with the extraordinarily high benefit-cost ratio, both indicate that the project will remain attractive under most plausible assumptions. We therefore strongly recommend initiating the proposal. Assumptions: 1. Discount rate of 10% 2. Principal costs: a. Worker exposure b. Risk of accidental exposure during transport c. Reduction to zero of the land value at the storage site d. Construction and maintenance 3. Principal benefits: a. Reduced exposure at current temporary storage sites b. Job creation – 1,000 temporary, 200 permanent jobs c. Extends life of existing nuclear power plants by ten years i. Lower electricity costs for consumers ii. Saves 7,000 jobs d. Increased profits for local service industries 4. Risk assessment: a. Exposure/fatality assumptions from the U.S. Department of Energy b. Probability of fatal exposure due to transport accident: 1/100,000,000 miles (Source: U.S. Department of Energy) c. Value of a statistical life: $1 million 

1. Do you believe the report? 

2. Find and explain six separate concerns you have with the study.

Answer rating: 100% (QA)

1 The report comes from the Center for the Objective Study of Nuclear Issues which may indicate bias in favor of the nuclear industry This could lead to potential overestimation of benefits and undere... View the full answer