Land Valuation and Decision Making on the Efficient Application of Public Policy
20 Pages Posted: 16 Apr 2010
Date Written: July 18, 2008
The purpose of this article is to explore some considerations based on the criterion of pure economic efficiency necessary to design efficient public policy for the allocation of public-interest environmental assets. A version of the Fisher and Krutillas’s model is proposed to study the problem of natural resources optimal allocation under conflicts of use between conservation and development. The model is a tool to determine the best use of an urban natural environment in Bogota, Colombia. Under the scenarios of conservation-passive use, conservation-active use and partial development, the major and the best use for the urban natural environment is the option of conservation-passive use. This option reports a cost benefit ratio of 3.44, estimated with the Contingent Valuation method of non-market values under this option. This information is useful for policy makers to choose the major and the best use for the urban natural environment.
Note: Downloadable document is in Spanish.
Keywords: Non-market benefits, Optimal allocation, Conservation versus development, Cost Benefit Analysis and the Environment
JEL Classification: Q51, Q54, Q56
Suggested Citation: Suggested Citation