The effect of joint and several liability under superfund on brownfields

To encourage redevelopment of potentially contaminated sites (or brownfields), various programs protect purchasers of such sites from Superfund liability. This protection may be unwarranted, however, if sellers can reduce property prices to compensate buyers for this liability. We identify four previously overlooked effects of joint and several liability under Superfund that may discourage sales. Thus, the brownfields problem may be more widespread than the prior literature suggests. Furthermore, the effects we identify may distort any decision of anyone subject to any joint and several liability if that decision may affect the number of other parties liable for the same harm. (C) 2007 Elsevier Inc. All rights reserved.