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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
Utah State University Department of Economics
Publication Date
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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
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