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Theoretical model shows maximizing social welfare drives NIMBY facility placement to city edges, suggesting municipal borders naturally minimize aggregate resident opposition.
The NIMBY (Not In My Back Yard) facility siting problem is a social choice problem that arises when a public good with negative externalities is to be located in a community. In this article, we construct a simple model that focuses on the relationship between social choice regarding NIMBY facilities and the population distribution of residents in a city. Specifically, we model a city as a distribution of residents in onedimensional space and examine the properties of social welfare, which is the sum of the single-dipped utility that each resident receives from NIMBY facilities. As a result, we find that regardless of the distribution of residents, the social welfare of the edge of the city is maximized as a choice for the installation of NIMBY facilities. This simple but powerful finding is partially confirmed by Japanese data, which shows that the location of municipal solid waste facilities, a typical NIMBY facility, tends to be near the boundary of municipalities.
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Ishida et al. (2026) studied this question.
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