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Using Choice Question Formats to Determine Compensable Values: The Case of a Landfill-Siting Process
Economics Research Institute Study Paper
  • Therese Grijalva
  • Arthur J. Caplan, Utah State University
  • Douglas Jackson-Smith, Utah State University
Document Type
Article
Publisher
Utah State University Department of Economics
Publication Date
1-1-2004
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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.
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.

Citation Information
Therese Grijalva, Arthur J. Caplan and Douglas Jackson-Smith. "Using Choice Question Formats to Determine Compensable Values: The Case of a Landfill-Siting Process" Economics Research Institute Study Paper Vol. 12 (2004) p. 1 - 36
Available at: http://works.bepress.com/arthur_caplan/106/