Problem
i. What is a "public purpose"? Explain the frustration of the public purpose problem. What is the main legal doctrine used to solve this problem?
ii. In the United States, the production of ethanol fuel from corn is subsidized. Use the bid rent function analysis to suggest what effects this subsidy might be expected to have on land use. (your answer should include appropriate diagram)
iii. Discuss the innovative market based policy remedies that address the problem of inefficient land use and conversion.
iv. There are two problems associated with land use which are receiving lot of attention in recent years. Identify these two problems and discuss possible solutions.