2007 Fiscal Year Final Research Report Summary
Researches on the Estimation of the Social cost Accompanied by the Delay of Urban Development and the Proposal of New Urban Development Procedure.
| Project/Area Number |
17530190
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Applied economics
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| Research Institution | Sophia University |
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Principal Investigator |
YAMAZAKI Fukuju Sophia University, Dept. of Economics, Professor (10166655)
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| Co-Investigator(Kenkyū-buntansha) |
SESHIMO Hiroyuki Senshu University, Dept. of Business Administration, Professor (20265937)
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| Project Period (FY) |
2005 – 2007
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| Keywords | urban development / negative externality / Internalization / reconstruction of Apartment / property right / development permission |
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| Research Abstract |
Our research provides two main results. First, we propose the new approaches to urban development and the reconstruction of apartment building. Although these developments and reconstructions cause serious loss and risk to the involved peoples, it is difficult to calculate the appropriate compensation for these peoples. Our proposal is to introduce the property-right swap-procedure with put-option. This procedure has many advantages for the risk sharing and loss compensation accompanied by urban developments and the reconstruction of apartment.
Second, we estimate empirically the social cost and benefit generated by new buildings. The cost and benefit analysis are important for urban development. Our object building is the apartment constricted in KunitachiCity, Tokyo. The developer that constructed this apartment was filed a suit by the neighborhoods for the reason that the building disturbed the surrounding environment and spoiled the appearance of the street. In this study, we estimate the external costs for the environment and the view for the neighborhoods. Then, we estimate the market value loss of the developers suffered by this suit. From these two calculations, we find out the regulation for height and view introduced in the Kunitachi City are no economic value and the suit generates no losses for the developer-sector but does serious loss for the filled developer.
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