Further description:- France  Cost benefit analysis 

Glossary Entry:- France  Cost benefit analysis
A form of economic analysis in which costs and benefits are converted into monetary values for comparison 
Overview
The concept of 'cost-benefit analysis' (CBA) has been used in French regulations since 1977. It is 
implicitly mentioned when the risk management policy recommends the use of the best available techniques
at the best economically acceptable cost. The 2007 adaptations of the French contaminated land management
approach and, in particular, the introduction of the Management Plan procedure, clearly emphasize
CBA. The objective of CBA is to reach the best level of environment protection for humans and the environment
at a reasonable cost, while avoiding the unnecessarily disproportionate use of resources in comparison
with the interests to be protected.
1. General Approach
New regulations came into force in early 2007. As a result of the application of existing regulations 
and drawing on the experience gained over more than 10 years of risk management, they introduce new
methodological tools – Media Quality Assessment (MQA) and Management Plan and Residual Risk Analysis
(RRA). These tools make considerable use of Cost Benefit Analysis. Cost-Benefit Analysis is now the keystone of the proposed system. Rational environmental management requires the quantification of risks and costs. CBA is a tool
for decision makers. Before contaminated land is remediated, CBA aims to determine simultaneously:
•the remediation goal, according to the environmental policy •whether the investment can be justified by the expected environmental benefits
 
2. Policy and Regulation
2.1 Policy
A global environmental analysis must be considered. The policy of risk management according to use 
does not eliminate the need to seek possible ways to eliminate the sources of pollution, taking into
consideration available techniques and their cost. Costs-benefit analysis does not involve simply carrying out a detailed study, but rather providing
factual elements of comparison for all possible solutions. It must provide information that will
serve as a basis for discussion between: •building owners, project superintendents, engineering and design departments and remediation
companies •owners, and government authorities (when the latter study the Management Plan) After the management options have been identified, the Management Plan is developed based on a
cost-benefit approach that takes into account the following criteria: •technical measures and their cost •socio-economic and environmental aspects •sustainable development prospects and the global environmental assessment The Management Plan having the most favourable cost-benefit analysis is chosen, care being taken,
however, to discriminate in favour of options that enable: •firstly, the elimination of the source of contamination (e.g. treatment, removal of highly contaminated
soil) •secondly, the deactivation of transfer pathways If the pollution in question is historical, it is necessary to reach the best level of environmental
protection for humans and the environment at a reasonable cost, while avoiding the unnecessarily
disproportionate use of resources compared to the interests to protect. Cost-benefit analysis
must therefore be done so that decision makers have tangible elements that justify their final choices.
It is not always necessary, for example, to excavate contaminated soil from sites where environmental
impacts have been identified long since and are well known. Alternative solutions can be proposed
such as on-site treatment or containment. The CBA approach makes it possible to validate a Management Plan, from among the various management
options, while seeking: •firstly, measures that will eliminate the contamination while considering all available techniques
and their cost •secondly, in the event that measures to eliminate the source are inexistent or insufficient,
measures that will permanently eliminate all possible contact between the contamination (soil,
emissions, etc.) and people The criteria to consider are both objective (technique performance, their cost) and subjective
(social acceptability of a management option). However, the justification of the technical choices made and the proposed management measures
must now be based on explicit, well-argumented and transparent criteria.
 
2.2 Regulation
CBA is mentioned in:  
•the Decree of September 21, 1977, art. 34-3: '[…] the prefect determines, if necessary, […] what 
work and monitoring measures are needed. These prescriptions depend on the proposed use, taking
into account the effectiveness of the remediation techniques under economically acceptable conditions
and the cost–benefit analysis of the remediation with regard to the proposed uses.' http://www.legifrance.gouv.fr/texteconsolide/UPHAP.htm
•the Decree of June 24, 2004 concerning the Operational summary referred to in the Decree of September
21, 1977 in application of the European Commission Directive 96/61/CE of September 24, 1996 concerning
Integrated Pollution Prevention and Control (IPPC Directive). http://www.ineris.fr/aida/?q=consult_doc/consultation/2.25
Other texts are also partly based on this concept: •the Law no. 95-101 of February 2, 1995, concerning the Strengthening of environmental protection:
'The principle of active prevention and mitigation of environmental damage, if possible at the
source, using the best available techniques at an economically acceptable cost.' http://www.ineris.fr/aida/?q=consult_doc/consultation/2.25
New regulations that went into effect on February 8, 2007: •Note of the Ministry of Ecology of February 8, 2007 concerning Contaminated sites and soil - Contaminated
site management and remediation procedures •Circular of the Ministry of Ecology of February 8, 2007 concerning Classified Installations
- Prevention of soil contamination - Contaminated site management •Circular BPSPR/2005-371/LO of the Ministry of Ecology of February 8, 2007 concerning the Closure
of Classified Installations - Chain of liability - Defaulting of responsible parties •Circular BPSPR/2006-77/LO of the Ministry of Ecology of February 8, 2007 concerning Classified
Installations - Application procedure for the detention of funds as mentioned in Environmental
Code no. 514-1
 
3. Funding
Site Project Funding


 
        
R&D funding
No further funding information available on the EUGRIS system
Market Information


 
    
4: Management tools / decision support and guidance

No further information available

5. Authors


 
    
6. Acknowledgements
Web portal for Contaminated soils of the French Ministry of Ecology, Energy, Sustainable Development 
and the Sea http://www.sites-pollues.developpement-durable.gouv.fr MEEDDAT - INERIS - AIDA. Database of regulations governing Classified Installations http://www.ineris.fr/aida/
Environnement & Techniques no. 258 - Juillet-Août 2006 Sols pollués. Refonte des textes et des outils de gestion D. Gilbert, S. Noël - MEDD DPPR F. Marot - ADEME D. Darmendrail, J.R. Mossmann, D. Fauconnier – BRGM C. Hulot, B. Hazebrouck - INERIS Additional references: French Ministry for Health http://www.sante.gouv.fr/htm/actu/pollution/pollution13.ht
Site ECOBILAN http://www.ecobilan.com/fr_costassessment.php#bottom Directive n° 2004/35/CE du Parlement européen et du Conseil du 21 avril 2004 sur la responsabilité
environnementale en ce qui concerne la prévention et la réparation des dommages environnementaux
http://www.ineris.fr/aida/?q=consult_doc/consultation/2.25