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NIMBY and mechanism design under different constitutional constraints

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  • Martin Besfamille
  • Jean-Marie Lozachmeur

Abstract

This paper analyses, in a simple two-region model, the undertaking of noxious facilities when the central government has limited prerogatives. The central government decides whether to construct a noxious facility in one of the regions, and how to …nance it. We study this problem under both full and asymmetric information on the damage caused by the noxious facility in the host region. We particularly emphasize the role of the central government prerogatives on the optimal allocations. We …nally discuss our results with respect to the previous literature on NIMBY and argue that taking into account these limited prerogatives is indeed important.

Suggested Citation

  • Martin Besfamille & Jean-Marie Lozachmeur, 2008. "NIMBY and mechanism design under different constitutional constraints," Department of Economics Working Papers 2008-11, Universidad Torcuato Di Tella.
    • Handle: RePEc:udt:wpecon:2008-11
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    Cited by:

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    2. Arbulú, Italo & Lozano, Javier & Rey-Maquieira, Javier, 2017. "The challenges of tourism to waste-to-energy public-private partnerships," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 916-921.
    3. Peng Xu & Xinyue Yao & Lan Lan & Ke Xu & Cunkuan Bao, 2022. "Research on the Paths and Effectiveness of Governance Tools Based on the Evolution of Environmental NIMBY Event," IJERPH, MDPI, vol. 19(4), pages 1-12, February.
    4. Daisuke Matsuzaki & Yoshiyasu Ono, 2021. "Regional subsidies and interregional labor movement," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(3), pages 557-577, June.
    5. Sen Eguchi, 2020. "NIMBY (not in my backyard) conflicts: a simple game-theoretic analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 4(3), pages 821-833, October.
    6. Paul Lehmann & Felix Creutzig & Melf-Hinrich Ehlers & Nele Friedrichsen & Clemens Heuson & Lion Hirth & Robert Pietzcker, 2012. "Carbon Lock-Out: Advancing Renewable Energy Policy in Europe," Energies, MDPI, vol. 5(2), pages 1-32, February.
    7. Bellettini, Giorgio & Kempf, Hubert, 2013. "Why not in your backyard? On the location and size of a public facility," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 22-30.
    8. Bert Saveyn, 2013. "On NIMBY and commuting," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(2), pages 293-311, April.
    9. Murat Öztürk & Hans Peters & Ton Storcken, 2014. "On the location of public bads: strategy-proofness under two-dimensional single-dipped preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(1), pages 83-108, May.

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    More about this item

    Keywords

    Noxious Facilities; NIMBY; Asymmetric information; Mechanism Design; Constitutional constraints;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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