Targeting tools for the purchase of environmental amenities.

A study was conducted to analyze how the joint spatial distribution of costs and environmental benefits affect efficiency losses from following targeting rules based on cost or benefits, rather than based on the benefit to cost ratio. It is demonstrated that the magnitude of the losses from targeti...

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Bibliographic Details
Published in:Land Economics Vol. 73; pp. 325 - 340
Main Authors: Babcock, Bruce A., Lakshminarayan, P. G., Wu, JunJie
Format: Article
Published: University of Wisconsin Press August 1997
Subjects:
Online Access:View this record in EBSCOhost
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          Babcock, Bruce A.
          Lakshminarayan, P. G.
          Wu, JunJie
      su:
        Environmental protection & economics
        Decision making in environmental policy
      sug:
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          Environmental protection & economics
          Decision making in environmental policy
      ab: A study was conducted to analyze how the joint spatial distribution of costs and environmental benefits affect efficiency losses from following targeting rules based on cost or benefits, rather than based on the benefit to cost ratio. It is demonstrated that the magnitude of the losses from targeting least cost land and environmentally sensitive land instead of land that offers the highest ratio of benefits to cost depends upon the joint distribution of costs and benefits. In addition, findings indicate that the amount of spatial variability in costs relative to benefits and how benefits and costs are correlated are the most important factors influencing the magnitude of efficiency losses.
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    language: English
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