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Optimal Allocation of Land between Productive Use and Recreational Use

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  • Eduardo L. Giménez
  • Manuel González‐Gómez

Abstract

This paper is an inquiry into the optimal allocation of time and natural areas to recreational uses, which have the feature of being a pure and continuous public good. We address this issue with a comprehensive approach. A static rational general equilibrium framework is developed in which heterogeneous agents allocate land and time endowments between alternative uses. This modeling has important advantages. First, Pareto‐optimal and voluntary‐contribution equilibrium allocations are obtained in a unified set‐up. Second, the suboptimality result of the decentralized equilibrium, the free‐rider problem on the provision of this nonexcludable public good, and different mechanisms to return the economy to its first‐best are analyzed. Finally, a methodological critique is made of some empirical literature, and it is suggested that our theoretical microeconomic‐based structure seems to be a suitable starting point for empirical research.

Suggested Citation

  • Eduardo L. Giménez & Manuel González‐Gómez, 2003. "Optimal Allocation of Land between Productive Use and Recreational Use," Journal of Regional Science, Wiley Blackwell, vol. 43(2), pages 269-294, May.
    • Handle: RePEc:bla:jregsc:v:43:y:2003:i:2:p:269-294
    DOI: 10.1111/1467-9787.00299
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    References listed on IDEAS

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    1. Rubio, Santiago J. & Goetz, Renan-U., 1998. "Optimal growth and land preservation," Resource and Energy Economics, Elsevier, vol. 20(4), pages 345-372, December.
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    Cited by:

    1. Lijing Tang & Dongyan Wang, 2018. "Optimization of County-Level Land Resource Allocation through the Improvement of Allocation Efficiency from the Perspective of Sustainable Development," IJERPH, MDPI, vol. 15(12), pages 1-19, November.
    2. Yong Liu & Yajuan Yu & Huaicheng Guo & Pingjian Yang, 2009. "Optimal Land-Use Management for Surface Source Water Protection Under Uncertainty: A Case Study of Songhuaba Watershed (Southwestern China)," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(10), pages 2069-2083, August.
    3. Patrick Heidkamp & Dean Hanink & Robert Cromley, 2008. "A land use model of the effects of eco-labeling in coffee markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 725-746, September.

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