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Vertically Summing Public Good Demand Curves: An Empirical Comparison of Economic versus Political Jurisdictions

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  • John B. Loomis

Abstract

Fiscal equivalence for efficient provision of a public good requires perfect correspondence between political and economic jurisdictions. However, the spatial extent of the economic jurisdiction is an empirical question. Drawing on four survey-based valuation studies, we measure the "relative public good benefit gradient" as a function of residential location from six natural resource public goods. The results indicate commonly used state political jurisdictions reflect an average of 13% of total benefits in the economic jurisdiction, although with a logarithmic form for distance the upper confidence interval of state benefits can include 100% for some species.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 76 (2000)
Issue (Month): 2 ()
Pages: 312-321

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Handle: RePEc:uwp:landec:v:76:y:2000:i:2:p:312-321

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Web page: http://le.uwpress.org/

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Cited by:
  1. Mazzanti, Massimiliano, 2003. "Valuing cultural heritage in a multi-attribute framework microeconomic perspectives and policy implications," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(5), pages 549-569, November.
  2. Ando, Amy W. & Shah, Payal, 2010. "Demand-side factors in optimal land conservation choice," Resource and Energy Economics, Elsevier, vol. 32(2), pages 203-221, April.
  3. Richardson, Leslie & Loomis, John, 2009. "The total economic value of threatened, endangered and rare species: An updated meta-analysis," Ecological Economics, Elsevier, vol. 68(5), pages 1535-1548, March.
  4. John Cullinan & Stephen Hynes & Cathal O’Donoghue, 2008. "Aggregating Consumer Surplus Values in Travel Cost Modelling Using Spatial Microsimulation and GIS Techniques," Working Papers 0807, Rural Economy and Development Programme,Teagasc.
  5. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
  6. Vajjhala, Shalini P. & Mische John, Anna & Evans, David A., 2008. "Determining the Extent of Market and Extent of Resource for Stated Preference Survey Design Using Mapping Methods," Discussion Papers dp-08-14, Resources For the Future.
  7. John Cullinan, 2011. "A Spatial Microsimulation Approach to Estimating the Total Number and Economic Value of Site Visits in Travel Cost Modelling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 50(1), pages 27-47, September.
  8. Deacon, Robert T & Schläpfer, Felix, 2007. "The spatial range of public goods revealed through referendum voting," University of California at Santa Barbara, Economics Working Paper Series qt1pf1369j, Department of Economics, UC Santa Barbara.
  9. Catherine Chambers & John Whitehead, 2003. "A Contingent Valuation Estimate of the Benefits of Wolves in Minnesota," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(2), pages 249-267, October.
  10. Schlapfer, Felix, 2006. "Survey protocol and income effects in the contingent valuation of public goods: A meta-analysis," Ecological Economics, Elsevier, vol. 57(3), pages 415-429, May.
  11. Bateman, Ian J. & Day, Brett H. & Georgiou, Stavros & Lake, Iain, 2006. "The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP," Ecological Economics, Elsevier, vol. 60(2), pages 450-460, December.
  12. Luke Brander & Andrea Ghermandi & Onno Kuik & Anil Markandya & Paulo A.L.D. Nunes & Marije Schaafsma & Alfred Wagtendonk, 2010. "Scaling up Ecosystem Services Values: Methodology, Applicability and a Case Study," Working Papers 2010.41, Fondazione Eni Enrico Mattei.
  13. De Valck, Jeremy & Vlaeminck, Pieter & Liekens, Inge & Aertsens, Joris & Chen, Wendy & Vranken, Liesbet, 2012. "The sources of preference heterogeneity for nature restoration scenarios," Working Papers 146522, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
  14. Jørgensen, Sisse Liv & Olsen, Søren Bøye & Ladenburg, Jacob & Martinsen, Louise & Svenningsen, Stig Roar & Hasler, Berit, 2013. "Spatially induced disparities in users' and non-users' WTP for water quality improvements—Testing the effect of multiple substitutes and distance decay," Ecological Economics, Elsevier, vol. 92(C), pages 58-66.
  15. Zafonte, Matthew & Hampton, Steve, 2007. "Exploring welfare implications of resource equivalency analysis in natural resource damage assessments," Ecological Economics, Elsevier, vol. 61(1), pages 134-145, February.

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