An Analysis on the NIMBY Conflict of Locating Funerary Facilities: From the Viewpoint of Transaction Costs Theory

Abstract

The public facilities for funerary service are often in short supply owing to the NIMBY (not in my backyard) confliction of locating funerary facilities. It is necessary to break through the obstacle of NIMBY confliction to provide enough funerary facilities. The transaction cost arose from resisting funerary facilities sited in one's own back yard is the crucial point for institutional arrangement. The purpose of this paper is trying to investigate the ”transaction cost of resistance” from the point view of new institutional doctrine and access its amount in order to find out the defects of existing administrative institution. There are three cases, including Yuan Shan Fuyuan, Fuh Guei shan cemetery and Da Ping Ding Funeral parlor and crematory, to be selected for positive estimation. The transaction cost of resistance is rather high among these cases. The high transaction cost implicates inequilibrium problems of institution, such as contractual uncertainty, information asymmetries, deficiencies of internalizing the externalities, and rent-seeking behavior. In order to decrease the transaction cost of resistance to achieve the equilibrium of supply and demand for funerary facilities, we make the suggestions for institution adjustments, including identification and reallocation the property rights, permitting the negotiation among the concerned parties.