Politics and Social Costs: Estimating the Impact of Collective Action on Hazardous Waste Facilities
AbstractFirms that generate negative externalities may consider the effects of their location on the surrounding environment because of the right of their prospective neighbors to demand compensation for pollution and raise the transaction costs of location. Since communities vary both in the value individuals place on the environment and in the ability of residents to organize politically, locations that generate the least political opposition may not be the locations that result in the lowest externalities. This article tests whether the degree to which firms internalize their externalities depends on the ability of affected communities to engage in collective action. The results indicate that firms processing hazardous waste, when deciding where to expand capacity, do take into account variations in the potential for collective action to raise their costs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 24 (1993)
Issue (Month): 1 (Spring)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.