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Phases of Imitation and Innovation in a North-South Endogenous Growth Model

Author

Listed:
  • Therese Grijalva
  • Arthur Caplan
  • Douglas Jackson-Smith

Abstract

Siting noxious facilities, such as community landfills, is a challenging problem for local planners, who recognize the importance of economic efficiency and equity, political acceptance, and meeting federal regulatory standards. Meeting these criteria requires technical and socio-economic analyses in conjunction with public input. Planners may also recognize that political acceptance requires compensation for the host community, either in the form of monetary or in-kind transfers. Following Breffle and Rowe (2002), we use a “resource-to-resource” paired-comparison survey method to estimate compensatory values associated with an in-county landfill for both the host and nonhost communities. Our results indicate that while a host-community household’s minimum willingness to accept payment for hosting a landfill may exceed a nonhost-community household’s maximum willingness to pay for a landfill, a large difference in population sizes between the two communities enables the landfill to pass a Kaldor compensation test, in terms of both monetary and substitute-resource equivalents.

Suggested Citation

  • Therese Grijalva & Arthur Caplan & Douglas Jackson-Smith, 2004. "Phases of Imitation and Innovation in a North-South Endogenous Growth Model," Working Papers 2004-12, Utah State University, Department of Economics.
  • Handle: RePEc:usu:wpaper:2004-12
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    File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/ERI2004-12.pdf
    File Function: First version, 2004
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    More about this item

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • 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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