Transaction costs and institutional change

Abstract

[Extract] The development or siting of unwanted facilities remains a major policy problem for industrialized countries around the world. Throughout Asia, Australia, Europe and North America, intense local opposition almost always greets attempts to site facilities that are perceived to be highly hazardous and risky, such as nuclear plants, high-level waste projects, and industrial projects. Local residents often view any local benefits as being small relative to the risks and burdens. These projects may be justified from a broader national perspective, but local communities often want them located somewhere else, a response often referred to as the 'not in my backyard'(NIMBY) syndrome (Popper, 1983). Such outcries generate political resistance, and makes siting a major policy challenge for both the private and public sectors in all democratic nations alike.