Nonoptimal Levels of Suburbanization

Suburbanization has many causes, among which is the attempt to relocate to acquire a more desirable vector of local public goods. The traditional economists' procedure for valuing public goods involves vertical aggregation of marginal willingness to pay, at a given income level. This approach is flawed by failing to recognize that individuals will not work for goods that cannot be acquired individually with higher incomes. There will be a parallel input market failure any time there is a public good output market failure, thus the ‘given income’ of the traditional valuation method is too low. Hence, traditional valuation methods result in underprovision of local public goods (for example, parks, safety, education, and environmental quality) at the urban centers. As a consequence, there will be nonoptimally large levels of suburban sprawl with substantial resulting welfare loss.

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THE EU SUGAR MARKET PROFILE AND ITS MAIN DRIVERS

Proceedings of the 7th International Scientific Conference Rural Development 2015 ◽

10.15544/rd.2015.111 ◽

2015 ◽

Author(s):

Lubos SMUTKA ◽

Irena BENEŠOVÁ ◽

Patrik ROVNÝ ◽

Renata MATYSIK-PEJAS

Keyword(s):

Market Failure ◽

Current System ◽

Quota System ◽

Considerable Debate ◽

Sugar Market ◽

The Common ◽

The One ◽

Production Capacities ◽

The Given ◽

The Eu

Sugar is one of the most important elements in human nutrition. The Common Market Organisation for sugar has been a subject of considerable debate since its establishment in 1968. The European agricultural market has been criticized for its heavy regulations and subsidization. The sugar market is one of the most regulated ones; however, this will change radically in 2017 when the current system of production quotas will end. The current EU sugar market changed is structure during the last several decades. The significant number of companies left the market and EU internal sugar market became more concentrated. The aim of this paper is presentation characteristics of sugar market with respect to the supposed market failure – reduction in competition. The analysis also identifies the main drivers and determinants of the EU especially quota sugar market. In relation to paper’s aim the following results are important. The present conditions of the European sugar market have led to market failure when nearly 75 % (10 million tonnes) of the quota is controlled by five multinational companies only. These multinational alliances (especially German and French one) are also taking control over the production capacities of their subsidiaries. In most countries, this causes serious problems as the given quota is controlled by one or two producers only. This is a significant indicator of market imperfection. The quota system cannot overcome the problem of production quotas on the one hand and the demand on the other; furthermore, it also leads to economic inefficiency. The current EU sugar market is under the control of only Sudzucker, Nordzucker, Pfeifer and Langen, Tereos and ABF.

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Grosser Wert und wenig Geld? Über die Honorierung von Waldleistungen | Highly Valuable But Hardly Remunerative? On Compensating Forest Benefits

Schweizerische Zeitschrift fur Forstwesen ◽

10.3188/szf.1999.0041 ◽

1999 ◽

Vol 150 (2) ◽

pp. 41-48 ◽

Cited By ~ 1

Author(s):

Ingrid Kissling-Näf

Keyword(s):

Social Change ◽

Property Rights ◽

Social Welfare ◽

Public Goods ◽

Market Failure ◽

Public Funding ◽

Forest Products ◽

Marketing Strategies ◽

Economic Perspective ◽

Financial Compensation

Forests provide people with a variety of services and products (protection against avalanches, walking trails, etc.). Most forest services and products are not provided by markets and the extent of their availability is often guaranteed by public funding. In this context, the question arises whether the high benefits derived from forests could not be converted into cash more easily. Looking at various explanations for the market failure (externalities, public goods, property rights) possible marketing strategies for forest products and services and how they could optimize social welfare are investigated. Although general compensation criteria are not available, economic concepts (type of externality, scarcity, etc.) provide a first clue as to the necessity of compensation. However, mention must be made that compensation is always the result of a social agreement, and financial compensation as well as property rights are subject to social change. From a political and an economic perspective the payment of compensation for forest benefits is limited.

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