Distributional Welfare Impacts of Public Spending: The Case of Urban versus National Parks

Distributional Welfare Impacts of Public Spending: The Case of Urban versus National Parks

Blog Article

This study examines the ELECTRO HYDRAT optimal allocation of funds between national and urban parks.Since travel costs to national parks are significantly higher than to urban parks, poor households tend to visit the latter more frequently, whereas rich households favor the former.Therefore, allocating public funds to improving the quality of national parks at the expense of urban parks disproportionately benefits high income households.By developing a theoretical model and implementing it using Israeli data, findings indicate all households, except for the Leather Gloves richest decile, prefer that the park authority divert a larger proportion of its budget from national to urban parks.