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Exchange Relationships and the Environment: The Acceptability of Compensation in the Siting of Waste Disposal Facilities


  • Edmundo Claro


Within siting literature there is strong agreement that compensation for environmental risks is a necessary condition for local acceptance of waste treatment facilities. In-kind compensation is commonly pushed forward as being more effective than financial benefits in reducing local opposition. By focusing on the siting of a sanitary landfill in Santiago, Chile, this paper explores the performance of both types of compensation and relates the analysis to the notion of social norms of exchange. These are understood as being based on three main types of social relations: care, justice and freedom. Whereas monetary compensation is associated with market relations based on freedom and the offer of in-kind compensation to egalitarian relations based on justice, the absence of compensation is linked to fraternal relations based on care. It is argued that in-kind compensation is more acceptable than monetary payments or no compensation because people tend to understand siting conflicts more as matters of justice rather than as matters of freedom or care.

Suggested Citation

  • Edmundo Claro, 2007. "Exchange Relationships and the Environment: The Acceptability of Compensation in the Siting of Waste Disposal Facilities," Environmental Values, White Horse Press, vol. 16(2), pages 187-208, May.
  • Handle: RePEc:env:journl:ev16:ev1609

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    Cited by:

    1. Amitrajeet Batabyal & Hamid Beladi, 2012. "A simple auction mechanism for locating noxious facilities," Letters in Spatial and Resource Sciences, Springer, vol. 5(1), pages 1-6, March.
    2. Spash, Clive L., 2009. "The Brave New World of Carbon Trading," MPRA Paper 19114, University Library of Munich, Germany.
    3. Naveed Paydara, Olga Schenk, Ashley Bowers, Sanya Carley, John Rupp and John D. Graham, 2016. "The Effect of Community Reinvestment Funds on Local Acceptance of Unconventional Gas Development," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    4. Upham, Paul & García Pérez, Jesús, 2015. "A cognitive mapping approach to understanding public objection to energy infrastructure: The case of wind power in Galicia, Spain," Renewable Energy, Elsevier, vol. 83(C), pages 587-596.
    5. Chai, Andreas & Bradley, Graham & Lo, Alex & Reser, Joseph, 2015. "What time to adapt? The role of discretionary time in sustaining the climate change value–action gap," Ecological Economics, Elsevier, vol. 116(C), pages 95-107.
    6. García, Jorge H. & Cherry, Todd L. & Kallbekken, Steffen & Torvanger, Asbjørn, 2016. "Willingness to accept local wind energy development: Does the compensation mechanism matter?," Energy Policy, Elsevier, vol. 99(C), pages 165-173.

    More about this item


    Waste; NIMBY; compensation; exchange relations;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling


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