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Hazardous waste is heavily regulated primarily because it poses significant risks to the environment and human health. Proper management and regulation are essential to prevent harmful substances from contaminating soil, air, and water, which could lead to long-term environmental damage and adverse health effects for people and wildlife. Regulations are designed to ensure safe handling, treatment, and disposal of hazardous waste, thereby minimizing potential exposure and the associated risks.

The other options do not accurately capture the primary reason behind the regulation of hazardous waste. For instance, while it is possible for certain waste management strategies to have economic benefits, this is not a fundamental reason for the strict regulations. Additionally, hazardous waste is not considered a natural resource, as its management typically involves treating and containing harmful materials rather than using them for economic gain. Lastly, while cost-effective management is a desirable outcome, it does not directly justify the need for regulations; the priority is ensuring safety and environmental protection first and foremost.