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National Government Intervention in Financing LGU Projects with Environmental Objectives

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  • Ma. Nimfa F. Mendoza

    (School of Economics, University of the Philippines)

Abstract

Market failures due to, among other factors, the presence of externalities, incomplete markets and ill-defined property rights provide a rationale for government intervention since private market provision will tend to lead to inefficient allocation and use of natural resources and the environment. Another rationale for government intervention is income redistribution which can have signi?cant environmental impact. The paper explores the roles of the national government and local government units in ?nancing local projects with environmental objectives. To illustrate the concepts, the cases of municipal solid waste management in Metro Manila and small watershed protection are analyzed. The rationale for national government intervention and pro[sic] cost-sharing schemes for the different levels of government are presented for the speci?c projects.

Suggested Citation

  • Ma. Nimfa F. Mendoza, 1997. "National Government Intervention in Financing LGU Projects with Environmental Objectives," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 34(2), pages 143-189, December.
    • Handle: RePEc:phs:prejrn:v:34:y:1997:i:2:p:143-189
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/96/489
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