The Economic and Social Impacts of NIMBYs

This paper examines some of the issues and controversies that arise when facilities with perceived noxious environmental, social, and economic effects (NIMBYs) locate in communites. Five specific categories of NIMBYs are examined, including: (1) interstate highways, (2) large dams, (3) medium and maximum security prisons, (4) commercial nuclear power plants, and (5) gambling casinos. The paper uses quasi-experimental control group methods to assess the economic impacts of these facilities on U.S. counties during the period 1972-94. The paper shows that few actual negative effects can be attributed to NIMBYs. However, only interstate highways result in broad based effects that measurably stimulate aggregate employment.