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Public Funding of Environmental Amenities: Contingent Choices Using New Taxes or Existing Revenues for Coastal Land Conservation

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  • Stephen K. Swallow
  • Michael P. McGonagle

Abstract

Alternative funding approaches affect stated preferences. An individual’s willingness to reallocate existing tax dollars exceeds willingness to pay new taxes to conserve land. However, stated preferences also imply a non-zero opportunity cost to existing tax dollars; different income groups reveal statistically equivalent marginal utilities both for income and for reallocating tax dollars. Yet individuals with lower income show a relatively larger increase in their willingness to support land conservation, when the choice shifts from new taxes to reallocation of existing tax dollars. The paper encourages consideration of equity implications that may be obscured when analysts focus on willingness to pay.

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File URL: http://le.uwpress.org/cgi/reprint/82/1/56
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Bibliographic Info

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

Volume (Year): 82 (2006)
Issue (Month): 1 ()
Pages: 56-67

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Handle: RePEc:uwp:landec:v:82:y:2006:i:1:p:56-67

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

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Cited by:
  1. Dmitriy Volinskiy & Michele Veeman & Wiktor Adamowicz, 2011. "Allocation of public funds to R&D: a portfolio choice-styled decision model and a biotechnology case study," Decisions in Economics and Finance, Springer, vol. 34(2), pages 121-139, November.
  2. Bell, Brian A. & Menzies, Sharon & Yap, Michael & Kerr, Geoffrey N., 2008. "Assessing the marginal dollar value losses to an estuarine ecosystem from an aggressive alien invasive crab," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 5978, Australian Agricultural and Resource Economics Society.
  3. Wilson, Amanda, 2010. "Coastal planning in North Shore City, New Zealand: Developing responsible coastal erosion policy," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59260, Australian Agricultural and Resource Economics Society.
  4. Burton, Michael & Jasmine Zahedi, Shegufa & White, Ben, 2012. "Public preferences for timeliness and quality of mine site rehabilitation. The case of bauxite mining in Western Australia," Resources Policy, Elsevier, vol. 37(1), pages 1-9.
  5. Abbie McCartney & Jonelle Cleland, 2010. "Choice Experiment Framing and Incentive Compatibility: observations from public focus groups," Environmental Economics Research Hub Research Reports 1076, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.

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