Land Valuation and Decision Making on the Efficient Application of Public Policy

20 Pages Posted: 16 Apr 2010

See all articles by Juan Carlos Mendieta-Lopez

Juan Carlos Mendieta-Lopez

Universidad de los Andes, Colombia - Department of Economics

Date Written: July 18, 2008

Abstract

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

Mendieta, Juan Carlos, Land Valuation and Decision Making on the Efficient Application of Public Policy (July 18, 2008). Available at SSRN: https://ssrn.com/abstract=1590583 or http://dx.doi.org/10.2139/ssrn.1590583

Juan Carlos Mendieta (Contact Author)

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

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