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Property-led Urban, Town and Rural Regeneration in Ireland: positive and perverse outcomes in different implementation contexts

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Author Info

  • Michelle Norris

    (Geary Institute, University College Dublin, School of Applied Social Science, University College Dublin)

  • Menelaos Gkartzios

    (Centre for Rural Economy, School of Agriculture, Food & Rural Development, Newcastle upon Tyne)

  • Dermot Coates

    (Housing Agency, Cumberland House, Dublin 2)

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    Abstract

    In the mid-1980s fiscal incentives were introduced to encourage the construction and refurbishment of residential developments in declining inner city districts in Ireland. These were abolished in 2006 but, during the intervening period, their focus was extended to include: large towns; small towns and a large rural region. Concurrently the context for their implementation changed as economic boom replaced prolonged economic stagnation. This paper examines the changing design of these incentives, their outputs and their intended and unintended impacts. It argues that, initially they were successful in drawing development into declining neighbourhoods but the extension of their lifespan and spatial focus created negative perverse impacts and deadweight costs for the exchequer. Thus it concludes that this regeneration strategy is useful for animating development in brownfield sites, where there is demand for housing but also barriers to its development. If applied to rural areas where housing demand is weaker they can generate excess supply and limited benefits for public investment.

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    File URL: http://www.ucd.ie/geary/static/publications/workingpapers/gearywp201311.pdf
    File Function: First version, 2013
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    Bibliographic Info

    Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 201311.

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    Length: 33 pages
    Date of creation: 12 Jun 2013
    Date of revision:
    Handle: RePEc:ucd:wpaper:201311

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    Related research

    Keywords: tax expenditures; property development; regeneration; urban decline; rural decline;

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    References

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    1. Colin Jones, 1996. "The Theory of Property-led Local Economic Development Policies," Regional Studies, Taylor & Francis Journals, vol. 30(8), pages 797-801.
    2. Patrick Honohan & Brendan Walsh, 2002. "Catching Up with the Leaders: The Irish Hare," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(1), pages 1-78.
    3. FitzGerald, John, 2005. "The Irish Housing Stock: Growth in Number of Vacant Dwellings," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2005(1-Spring), pages 1-22.
    4. Morgan Kelly, 2009. "The Irish Credit Bubble," Working Papers 200950, Geary Institute, University College Dublin.
    5. Morgan Kelly, 2009. "The Irish Credit Bubble," Working Papers 200932, School Of Economics, University College Dublin.
    6. Michael Keane & Eoghan Garvey, 2006. "Measuring the employment effects of the rural renewal tax scheme," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 359-374.
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