Sunday, October 15, 2017

The Police Station in My Backyard

In November 2015, my hometown of Lorton, Virginia passed a resolution to build a new police station and animal shelter in the community. Lorton is located in Northern Virginia, and lays on I-95 between the City of Fairfax and Woodbridge. To my family’s surprise, Lorton decided the best place to construct the new police station and animal shelter was less than a block away from my house (shown on map below).

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The sound pollution created by police sirens and dogs from the animal shelter barking can be treated as a negative production externality.  Interestingly, during a presentation for the Homeowner’s Association, the woman in charge of the project actually said that dog barking would typically be heard when they were let out to play, which she nonchalantly mentioned would be around 6:30 a.m.  Here, the social marginal costs that the police station/animal shelter imposes are greater than the private marginal costs, creating the negative production externality.  

For a resident in the City of Fairfax or Woodbridge, however, the presence of a police force in my “backyard” would create a positive consumption externality. For example, my grandparents are residents of the City of Fairfax, and since they would not pay for the increased safety services of the police station, but indirectly benefit from said increased safety services, the social marginal benefit of the increased Lorton police presence is greater than the private marginal benefit of those who directly pay for the service, and can be treated as a positive consumption externality.

Ultimately, the Homeowner’s Association (including both of my parents) came out vehemently against the chosen location.  However, the County has yet to make a final decision.

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