Benefits Transfer and Social Costs

Appendix B. Theoretical grounds for measuring social costs Since landfill disposal can lead to external costs to neighboring residents, market failures are often encountered. Although the benefits brought by the new landfill are shared by all citizens, the danger of the landfill (such as a decline in house value) is concentrated in the nearby inhabitants (Kunreuther and Kleindorfer 1986; Mitchell and Carson 1986 ). In order to measure the social cost of each target site within the community, the city decided to measure the willingness to pay (WTP) to avoid the external impact of the proposed landfill.

The most important issue indispensable to the study of all economic impacts is analytical reference system (McMillen, 1991). The correct classification of benefits and costs for actual benefits and relocations depends on what the defined community is - city, region, state or country. Consider, for example, a Riverboat casino in Lake Michigan in northwest Indiana. As mentioned earlier, social and recreational gambler's business from the community outside the community can be viewed as a benefit for the community. But what about social and recreational gymnasts living in other parts of Indiana? The impact of their business can be regarded as a profit for the casino community, but not to the state. The country will not benefit more than spending in one community than spending it in another community. Social and entertainment gymnasts about boats on the Indiana River in Illinois can ask similar questions.

Obsessive morbid gamblers cause high social expenses, which in fact can potentially offset the casino's economic interests. Many researchers are writing about the social costs of gambling addiction. Fraud caused by loss of income due to unemployment, reduced work efficiency, stress related depression and physical disorder, increased attempted suicide attempts, relief expenses, unrecoverable morbid gambler loans, unpaid debt and bankruptcy, pathological gambler , Corruption of civil servants, pressure on public service, industry murder (ie losses incurred by other industries due to the opening of town and city casinos), and higher premium resultant divorce gambling (Walker 87). In 1997, Thompson investigated the annual social cost (US dollar) of each enforceable gambler. He discovered that for compulsive gambling, social costs are around $ 9,469.