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Axiomatic foundation for Lindahl pricing in the NIMBY context

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  • Laurent-Lucchetti, Jérémy
  • Leroux, Justin

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.

Suggested Citation

  • Laurent-Lucchetti, Jérémy & Leroux, Justin, 2009. "Axiomatic foundation for Lindahl pricing in the NIMBY context," MPRA Paper 14930, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:14930
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    References listed on IDEAS

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    Cited by:

    1. Laurent-Lucchetti, Jérémy & Leroux, Justin, 2011. "Choosing and sharing," Games and Economic Behavior, Elsevier, vol. 73(1), pages 296-300, September.
    2. Hamilton, Timothy L. & Eynan, Amit, 2023. "Siting noxious facilities: Efficiency and majority rule decisions," European Journal of Operational Research, Elsevier, vol. 308(3), pages 1344-1354.

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    More about this item

    Keywords

    Public goods; Externalities; NIMBY; Location; Cost sharing;
    All these keywords.

    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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