The Problem

Abstract

The Gasworks company has filed an application to locate a liquefied energy gas (LEG) terminal in the vicinity of Pietersdorf. Gasworks feels that this proposed project is economically justifiable from an investment point of view. It has also been encouraged to undertake such a project by the National Energy Board, because LEG promises to meet some of the country’s future energy needs. The community of Pietersdorf stands to benefit from the plant insofar as it will provide additional tax revenues and future employment opportunities. However, some residents from the town are concerned about the impact of the facility on their future safety given the risk, even though relatively small, of a serious accident that might damage property as well as threaten lives. In addition, this group is concerned with the potential negative effect of large-scale technological facilities on the future quality of the environment and the lifestyle of their children and grandchildren. Environmentalist groups have voiced similar concerns and are opposed to the project.

This chapter was written by Howard Kunreuther.