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Distributional Welfare Impacts of Public Spending: The Case of Urban versus National Parks

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  • Feinerman, Eli
  • Fleischer, Aliza
  • Simhon, Avi

Abstract

This study examines the optimal allocation of funds between national and urban parks. Since travel costs to national parks are significantly higher than to urban parks, poor households tend to visit the latter more frequently, whereas rich households favor the former. Therefore, allocating public funds to improving the quality of national parks at the expense of urban parks disproportionately benefits high income households. By developing a theoretical model and implementing it using Israeli data, findings indicate all households, except for the richest decile, prefer that the park authority divert a larger proportion of its budget from national to urban parks.

Suggested Citation

  • Feinerman, Eli & Fleischer, Aliza & Simhon, Avi, 2004. "Distributional Welfare Impacts of Public Spending: The Case of Urban versus National Parks," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-17, August.
    • Handle: RePEc:ags:jlaare:31105
    DOI: 10.22004/ag.econ.31105
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    1. Stephen K. Swallow & Michael P. McGonagle, 2006. "Public Funding of Environmental Amenities: Contingent Choices Using New Taxes or Existing Revenues for Coastal Land Conservation," Land Economics, University of Wisconsin Press, vol. 82(1), pages 56-67.
    2. Huhtala, Anni & Pouta, Eija, 2006. "Discerning welfare impacts of public provision of recreation areas," Discussion Papers 11860, MTT Agrifood Research Finland.
    3. López-Mosquera, Natalia & Sánchez, Mercedes, 2011. "The influence of personal values in the economic-use valuation of peri-urban green spaces: An application of the means-end chain theory," Tourism Management, Elsevier, vol. 32(4), pages 875-889.
    4. Anni Huhtala & Eija Pouta, 2009. "Benefit Incidence of Public Recreation Areas—Have the Winners Taken Almost All?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(1), pages 63-79, May.

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