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NIMBY and mechanism design under different constitutional constraints

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  • Martin Besfamille

    ()

  • Jean-Marie Lozachmeur

Abstract

This paper analyses, in a simple two-region model, the undertaking of noxious facilities when the central government has limited prerogatives. The central government decides whether to construct a noxious facility in one of the regions, and how to …nance it. We study this problem under both full and asymmetric information on the damage caused by the noxious facility in the host region. We particularly emphasize the role of the central government prerogatives on the optimal allocations. We …nally discuss our results with respect to the previous literature on NIMBY and argue that taking into account these limited prerogatives is indeed important.

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Bibliographic Info

Paper provided by Universidad Torcuato Di Tella in its series Department of Economics Working Papers with number 2008-11.

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Length: 23 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:udt:wpecon:2008-11

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Web page: http://www.utdt.edu/ver_contenido.php?id_contenido=439&id_item_menu=568
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Related research

Keywords: Noxious Facilities; NIMBY; Asymmetric information; Mechanism Design; Constitutional constraints;

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References

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  1. O'Sullivan Arthur, 1993. "Voluntary Auctions for Noxious Facilities: Incentives to Participate and the Efficiency of Siting Decisions," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages S12-S26, July.
  2. Makowski Louis & Mezzetti Claudio, 1994. "Bayesian and Weakly Robust First Best Mechanisms: Characterizations," Journal of Economic Theory, Elsevier, vol. 64(2), pages 500-519, December.
  3. John O. Ledyard & Thomas R. Palfrey, 1994. "Voting and Lottery Drafts as Efficient Public Goods Mechanisms," Game Theory and Information 9405003, EconWPA, revised 22 May 1994.
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  5. Besfamille, Martin, 2004. "Local public works and intergovernmental transfers under asymmetric information," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 353-375, January.
  6. 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.
  7. Rob, Rafael, 1989. "Pollution claim settlements under private information," Journal of Economic Theory, Elsevier, vol. 47(2), pages 307-333, April.
  8. CREMER, Helmuth & PESTIEAU, Pierre, 1996. "Income redistribution in an economic union : the trade off between inter- and intranational redistribution," CORE Discussion Papers 1996053, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Tideman, T Nicolaus & Tullock, Gordon, 1976. "A New and Superior Process for Making Social Choices," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1145-59, December.
  10. Kunreuther, Howard & Kleindorfer, Paul R, 1986. "A Sealed-Bid Auction Mechanism for Siting Noxious Facilities," American Economic Review, American Economic Association, vol. 76(2), pages 295-99, May.
  11. Helmuth Cremer & Maurice Marchand & Pierre Pestieau, 1996. "Interregional redistribution through tax surcharge," International Tax and Public Finance, Springer, vol. 3(2), pages 157-173, May.
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  14. Neeman, Zvika, 1999. "Property Rights and Efficiency of Voluntary Bargaining under Asymmetric Information," Review of Economic Studies, Wiley Blackwell, vol. 66(3), pages 679-91, July.
  15. Keith Waehrer, 1997. "Hazardous Facility Siting When Cost Information is Private: An Application of Multidimensional Mechanism Design," Game Theory and Information 9702004, EconWPA, revised 26 Feb 1997.
  16. Denis Lescop, 2007. "Optimal mechanisms for siting noxious facilities," Review of Economic Design, Springer, vol. 10(4), pages 273-284, March.
  17. Massimo Bordignon & Paolo Manasse & Guido Tabellini, 2001. "Optimal Regional Redistribution under Asymmetric Information," American Economic Review, American Economic Association, vol. 91(3), pages 709-723, June.
  18. Cornes, Richard C. & Silva, Emilson C. D., 2002. "Local public goods, inter-regional transfers and private information," European Economic Review, Elsevier, vol. 46(2), pages 329-356, February.
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  22. Kleindorfer Paul R. & Sertel Murat R., 1994. "Auctioning the Provision of an Indivisible Public Good," Journal of Economic Theory, Elsevier, vol. 64(1), pages 20-34, October.
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  24. Kim, Sangheon, 2003. "An Almost Ideal Solution to the Siting Problem of Publicly Provided Indivisible Goods," International Tax and Public Finance, Springer, vol. 10(4), pages 357-75, August.
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  26. Alain Jean-Marie & Nicolas Marchetti & Mabel Tidball, 2004. "Low-bid Auction Versus High-bid Auction For Siting Noxious Facilities in a Two-city Region: an Exact Approach," CIRANO Working Papers 2004s-52, CIRANO.
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Citations

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Cited by:
  1. Bossert W. & Peters H.J.M., 2013. "Single-basined choice," Research Memorandum 030, Maastricht University, Graduate School of Business and Economics (GSBE).
  2. Bert Saveyn, 2013. "On NIMBY and commuting," International Tax and Public Finance, Springer, vol. 20(2), pages 293-311, April.
  3. Paul Lehmann & Felix Creutzig & Melf-Hinrich Ehlers & Nele Friedrichsen & Clemens Heuson & Lion Hirth & Robert Pietzcker, 2012. "Carbon Lock-Out: Advancing Renewable Energy Policy in Europe," Energies, MDPI, Open Access Journal, vol. 5(2), pages 323-354, February.
  4. Giorgio Bellettini & Hubert Kempf, 2008. "Why not in your Backyard? On the Location and Size of a Public Facility," CESifo Working Paper Series 2248, CESifo Group Munich.

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