Study addressing the concern of municipal governments about the effect open space and conservation easements may have on local taxes- often their primary source of revenue. Property tax incentives recognize some of the common property economic benefits of open space. These benefits, such as aquifer recharge or scenic vistas, are public. All members of the community benefit equally. Since development precludes or threatens these open space environmental services, discussions about growth and preservation should include them.
Government seeks to protect the greatest social benefit.
Maximization of total social welfare, with municipal revenues a part of that greater picture, will need to assess open space benefits. However, the values of the environmental services flowing from the open space land, as measured by the cost-benefit analysis, more than compensate municipalities for this loss. Paddock, Richard C. August 1994. The most controversial approach to damage assessment is called contingent valuation, which is a way of estimating value of lost use. Using this method, economists pose hypothetical questions to members of the public to learn how much they would pay to preserve a place such as the upper Sacramento River, even if they might never visit it.