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Conservation policies, environmental valuation and the optimal size of jurisdictions

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  • Giovanni B. Concu

    () (Risk and Sustainable Management Group, University of Queensland)

Abstract

The size of a jurisdiction is crucial in determining the efficiency, equity or efficacy of environmental regulations. However, jurisdictions are usually taken to coincide with political boundaries even if environmental externalities may transcend them. This paper illustrates the design and implementation of a Choice Modelling experiment to determine the spatial distribution of environmental benefits of Kings Park (Western Australia). The objective is to understand if federal, state or local resources are the appropriate form of funding a conservation policy. Results indicate that there are interstate spillovers of benefits, hence justifying federal contributions to Kings Park. They also show that some benefits are homogeneously spread within Western Australia, and this is an indication that state funding is also appropriate. Other benefits are distance-dependent; some level of local/council funding is warranted

Suggested Citation

  • Giovanni B. Concu, 2006. "Conservation policies, environmental valuation and the optimal size of jurisdictions," Murray-Darling Program Working Papers WP8M06, Risk and Sustainable Management Group, University of Queensland.
  • Handle: RePEc:rsm:murray:m06_8
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    File URL: http://www.uq.edu.au/rsmg/WP/WPM06_8.pdf
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    Keywords

    federal regulation; decentralised policies; benefits spillovers; environmental valuation; choice modelling; distance;

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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