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Axiomatic foundation for Lindahl pricing in the NIMBY context

  • Laurent-Lucchetti, Jérémy
  • Leroux, Justin

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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  1. Jérémy Laurent-Lucchetti & Justin Leroux, 2007. "Choosing and Sharing," Cahiers de recherche 07-13, HEC Montréal, Institut d'économie appliquée.
  2. Marchetti Nicolas & Serra Daniel, 2003. "A cooperative game for siting noxious facilities: theory and experimental design," Economics Bulletin, AccessEcon, vol. 3(22), pages 1-8.
  3. Herve Moulin, 2004. "Fair Division and Collective Welfare," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633116, June.
  4. 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.
  5. Fischbeck, Paul & Vajjhala, Shalini, 2006. "Quantifying Siting Difficulty: A Case Study of U.S. Transmission Line Siting," Discussion Papers dp-06-03, Resources For the Future.
  6. 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.
  7. repec:ebl:ecbull:v:3:y:2003:i:22:p:1-8 is not listed on IDEAS
  8. David P�rez-Castrillo & David Wettstein, 2002. "Choosing Wisely: A Multibidding Approach," American Economic Review, American Economic Association, vol. 92(5), pages 1577-1587, December.
  9. Toyotaka Sakai, 2012. "Fair waste pricing: an axiomatic analysis to the NIMBY problem," Economic Theory, Springer, vol. 50(2), pages 499-521, June.
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