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Financing Outdoor Recreation

Author

Listed:
  • H. Spencer Banzhaf

    (Center for State and Local Finance, Andrew Young School of Policy Studies, Georgia State University)

  • V. Kerry Smith

    (Department of Economics, Arizona State University)

Abstract

The National Park Service and other agencies have argued that our recreation lands face a crisis of deferred maintenance. This paper evaluates two proposals for funding public lands, increasing gate fees and taxing recreational gear. It analyzes the joint welfare effects of such taxes and the services supported by the revenue. It shows that when the taxed goods and the public service are "weak complements," there is a simple sufficient statistic determining whether the joint effect increases welfare both for consumers and sellers: Namely, the demand for the taxed good increases. The paper illustrates these results with data for recreational services.

Suggested Citation

  • H. Spencer Banzhaf & V. Kerry Smith, 2020. "Financing Outdoor Recreation," Center for State and Local Finance Working Paper Series cslf2001, Andrew Young School of Policy Studies, Georgia State University.
  • Handle: RePEc:ays:cslfwp:cslf2001
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    File URL: https://cslf.gsu.edu/files/2020/07/cslf2001.pdf
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    Cited by:

    1. Neill, Jon R., 2022. "Using consumer’s surplus to bound willingness to pay for non-market goods," Resource and Energy Economics, Elsevier, vol. 67(C).

    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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