Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

12

Publisher

Utah State University Department of Economics

Publication Date

2004

Rights

Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.

First Page

1

Last Page

36

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-toresource" 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.

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