Economic justification for the Tennessee Lead Elimination Action Program

Ingestion of lead by children can cause physical health issues and learning development issues. A primary source of lead as a hazard for children is found in deteriorating lead-based paint. The Tennessee Lead Elimination Action Program (TN LEAP) is a grant-funded initiative designed to identify and control lead poisoning hazards in Tennessee homes. TN LEAP conducted a study to evaluate the economic justification for the control of lead hazards through TN LEAP efforts. Using lead remediation cost information, the previously established relationship between child blood lead levels and loss of potential income, a loss-of-lifetime earnings was calculated for affected children. The economic Net Present Value (NPV) was calculated based on the expenses of lead hazard control and savings of lifetime earnings potential. Although blood lead levels for Tennessee children have significantly increased over the past 10 years, the current average for tested children is 2.51 microg/dL. The average remediation expense for houses affected by TN LEAP is $7,598 per unit. The NPV for the loss of lifetime income per housing unit is $17,035. Evaluating the total project yields a result of a positive NPV of $9,437. The study found that using an NPV analysis, there is a positive economic payback for reducing lead hazards in Tennessee homes. The future savings realized from lifetime income earnings will exceed the current remediation expenses.