| Budget Amount *help |
¥1,600,000 (Direct Cost: ¥1,600,000)
Fiscal Year 1999: ¥500,000 (Direct Cost: ¥500,000)
Fiscal Year 1998: ¥500,000 (Direct Cost: ¥500,000)
Fiscal Year 1997: ¥600,000 (Direct Cost: ¥600,000)
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| Research Abstract |
The rising level of municipal solid waste has become an important policy problem, especially in metropolitan areas, because of the shortage of landfills and disposal facilities. The extra costs and benefits not captured by the market transaction are called externalities. In a perfect market, natural resources are used up at an efficient rate. But when positive or negative externalities exist, markets will not provide an efficient outcome.
Government may deal with environmental externalities by imposing regulatory measures (the command and control approach), taxes and granting subsidies, or issuing marketable permits. There are two categories of goods : ordinary private consumption goods and collective consumption goods which all enjoy in common in the sense that each individual's consumption of such a good leads to no subtraction from any other individual's consumption of that good. For some public goods there may be no spatial restriction, but for others the benefits are confined to on
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e community, although available at no additional cost to new residents. The theory of local public goods assume that goods are provided to a particular geographical location, and consumers decide their location with respect to the quantity and types of public goods provided.
These are several reasons why the central government may intervene : redistribution, externalities, and correcting inefficiencies in the local public goods equilibrium. At the central government level, the design of policy is now constrained by the reactions both of individuals and of lower-level governments. The positive theory of local decision-making is therefore considerably important. The decision making process is relying on the majority voting assumption. Different voters have different views about what the government should do. In some cases, the choice made in majority voting reflects the preferences of the median voter. Sources of public failure include imperfect information for designing and implementing programs. Therefore it is important to disclose the information, which the central and the lower-level government have. Less
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