Axiomatic foundation for Lindahl pricing in the NIMBY context

Jérémy Laurent-Lucchetti and Justin Leroux

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Public goods; Externalities; NIMBY; Location; Cost sharing (search for similar items in EconPapers)
JEL-codes: D63 H41 (search for similar items in EconPapers)
Date: 2009-04
New Economics Papers: this item is included in nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:14930

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