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Axiomatic foundation for Lindahl pricing in the NIMBY context

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Author Info
Laurent-Lucchetti, Jérémy
Leroux, Justin

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Abstract

The siting of public facilities, such as prisons, airports or incinerators for hazardous waste typically faces social rejection by local populations (the "NIMBY" syndrome, for Not In My BackYard). These public goods exhibit a private bad aspect which creates an asymmetry: all involved communities benet from their existence, but only one (the host community) bears the local negative externality. We view the siting problem as a cost sharing issue and provide an axiomatic foundation for Lindahl pricing in this context. The set of axioms we introduce are specically designed to overcome the asymmetry of the problem.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14930.

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Date of creation: Apr 2009
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Handle: RePEc:pra:mprapa:14930

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Related research
Keywords: Public goods; Externalities; NIMBY; Location; Cost sharing.;

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Laurent-Lucchetti, Jérémy & Leroux, Justin, 2009. "Choosing and Sharing," MPRA Paper 14929, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  2. Minehart, Deborah & Neeman, Zvika, 2002. "Effective Siting of Waste Treatment Facilities," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 303-324, March. [Downloadable!] (restricted)
  3. Marchetti Nicolas & Serra Daniel, 2003. "A cooperative game for siting noxious facilities: theory and experimental design," Economics Bulletin, Economics Bulletin, vol. 3(22), pages 1-8. [Downloadable!]
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Laurent-Lucchetti, Jérémy & Leroux, Justin, 2009. "Choosing and Sharing," MPRA Paper 14929, University Library of Munich, Germany. [Downloadable!]
    Other versions:
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This page was last updated on 2009-11-27.


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