Research On Brownfield Remediation Industry Development Strategies From The Perspective Of Cost-Benefit Analysis

Brownfield refers to the land which is (potentially) polluted, and has not been fully utilized. Brownfield remediation and redevelopment is not only practical requirement of city updating and intense use of land, but also important means to optimize city structure and promote sustainable development.With acceleration of city urbanization and implementation of policy of industrial structure adjustment, several lands are needed to be remediated and redeveloped. As a result, brownfield remediation industry is becoming in a critical period of development. However, our country’s brownfield remediation industry is not developing as smoothly as it seems to be. Some factors should be considered, and one of them is brownfield remediation enterprises are in poor operating conditions. This paper makes a comparison between remediation cost and benefit occurred in the brownfield remediation project, which does a favor of project investment decision for enterprises, improving industrial development as well.There are many ways to analyze cost and benefit, but most of them are supported by accurate data. It is hard to make it, due to our county’s incomplete industrial development system. Cost-volume-profit method is applied in the paper, which doesn’t require as much as other methods in data collection. The paper firstly refers to research background and significance, review on research progress at home and abroad, structure, and method. After that, it makes brief introduction of foreign countries’ development of brownfield remediation industry, comparing with our county’s status. Some industry barriers are found out. Then it makes use of cost-volume-profit analysis to dis various cost of brownfield remediation project, also analyzes profit and loss balance by combination of project profit. According to the cost behavior, case study classifies the cost and benefit in the project, providing a method to balance cost and benefit. It makes a contribution to the brownfield remediation industry not only in theoretical study but also in practical application.