IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v99y2020ics0264837719319362.html
   My bibliography  Save this article

The production and consumption of land use planning: A neo-institutional economic perspective & three Taiwan case studies of planning layering

Author

Listed:
  • Lai, Lawrence W.C.
  • Davies, Stephen N.G.
  • Chan, Edwin H.W.
  • Chua, Mark Hansley
  • Lin, C.L.

Abstract

Hitherto research by planning researchers on the economics of land use planning have sought to interpret and re-interpret the role of such planning as a non-market measure to: (a) remedy market failure; (b) delineate and re-delineate property rights to land; and (c) determine the economic impact (effectiveness) of (a) and (b) on, say, efficiency (welfare), property values, and development. This paper develops the thesis from a neo-institutional economic perspective that the land use planning process is not just an indicative exercise of plan preparation, promulgation, and interpretation, but also a real production and consumption process. The former for laying out or platting a greenfield site is explained by elaborating on the analogy of cutting a diamond, while the latter is explained in terms of the physical features of public goods other than being informational. It then proceeds to how a formal de jure layout imposed by the state as a kind of corrective for an antecedent bottom-up (and in this sense “spontaneous”) de facto pre-existing layout constrains subsequent development of a place. Three Taiwanese examples are used to show how pre-existing ‘cuts’, to places that varied in terms of population and modernity, may constrain and survive subsequent cuts that seek to modernize and reform the former. Reasons based on transaction costs are offered for the key observations.

Suggested Citation

  • Lai, Lawrence W.C. & Davies, Stephen N.G. & Chan, Edwin H.W. & Chua, Mark Hansley & Lin, C.L., 2020. "The production and consumption of land use planning: A neo-institutional economic perspective & three Taiwan case studies of planning layering," Land Use Policy, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s0264837719319362
    DOI: 10.1016/j.landusepol.2020.104910
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719319362
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2020.104910?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cheshire, Paul & Sheppard, Stephen, 2002. "The welfare economics of land use planning," Journal of Urban Economics, Elsevier, vol. 52(2), pages 242-269, September.
    2. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    3. Hochman, Oded & Pines, David, 1982. "Costs of Adjustment and the Spatial Pattern of a Growing Open City," Econometrica, Econometric Society, vol. 50(6), pages 1371-1391, November.
    4. Henderson, J. Vernon & Regan, Tanner & Venables, Anthony J., 2016. "Building the city: sunk capital, sequencing andinstitutional frictions," LSE Research Online Documents on Economics 66536, London School of Economics and Political Science, LSE Library.
    5. Venables, Anthony & Henderson, J. Vernon & Regan, Tanner, 2016. "Building the city: urban transition and institutional frictions," CEPR Discussion Papers 11211, C.E.P.R. Discussion Papers.
    6. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    7. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
    8. Frank Lorne, 2009. "Macro-entrepreneurship and sustainable development: the need for innovative solutions for promoting win-win interactions," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 10(2), pages 69-85, June.
    9. Arruñada, Benito, 2018. "Evolving practice in land demarcation," Land Use Policy, Elsevier, vol. 77(C), pages 661-675.
    10. Gwaleba, Method Julius & Chigbu, Uchendu Eugene, 2020. "Participation in property formation: Insights from land-use planning in an informal urban settlement in Tanzania," Land Use Policy, Elsevier, vol. 92(C).
    11. Frank T. Lorne, 2009. "Macro-entrepreneurship and sustainable development: the need for innovative solutions for promoting win-win interactions," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 10(2), pages 69-85, June.
    12. Davies, Stephen N.G. & Lai, Lawrence W.C. & Chua, Mark Hansley, 2018. "Seen from above: The theoretical future of aerial photos in land use, environmental and planning study," Land Use Policy, Elsevier, vol. 78(C), pages 19-28.
    13. Chris Webster & Lawrence W.-C. Lai, 2003. "Property Rights, Planning and Markets," Books, Edward Elgar Publishing, number 2625.
    14. Chris Couch & Alex Lord & Matthew Cocks, 2015. "Questioning the concept of market failure in housing: the case of Housing Market Renewal in Liverpool," European Journal of Housing Policy, Taylor and Francis Journals, vol. 15(4), pages 461-490, October.
    15. Chris Couch & Alex Lord & Matthew Cocks, 2015. "Questioning the concept of market failure in housing: the case of Housing Market Renewal in Liverpool," International Journal of Housing Policy, Taylor & Francis Journals, vol. 15(4), pages 461-490, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. LAI, Lawrence W.C. & DAVIES, Stephen N.G. & CHAU, K.W. & CHOY, Lennon H.T. & CHUA, Mark H. & LAM, Terry K.W., 2022. "A centennial literature review (1919–2019) of research publications on land readjustment from a neo-institutional economic perspective," Land Use Policy, Elsevier, vol. 120(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lawrence Lai, 2011. "Commentary: Journey through Six Property Rights Stories along the Pacific Rim," Urban Studies, Urban Studies Journal Limited, vol. 48(3), pages 589-594, February.
    2. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    3. J. Peter Clinch & Eoin O'Neill, 2010. "Assessing the Relative Merits of Development Charges and Transferable Development Rights in an Uncertain World," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 891-911, April.
    4. Shahab, Sina & Clinch, J. Peter & O'Neill, Eoin, 2019. "An Analysis of the Factors Influencing Transaction Costs in Transferable Development Rights Programmes," Ecological Economics, Elsevier, vol. 156(C), pages 409-419.
    5. Blankart, Charles B., 1974. "Some remarks on the theory of research policy and their application to university research," Discussion Papers, Series I 47, University of Konstanz, Department of Economics.
    6. McCann, Laura & Colby, Bonnie & Easter, K. William & Kasterine, Alexander & Kuperan, K.V., 2005. "Transaction cost measurement for evaluating environmental policies," Ecological Economics, Elsevier, vol. 52(4), pages 527-542, March.
    7. Howells, John, 2005. "Are Patents used to Suppress Useful Technology?," Working Papers 2005-10, University of Aarhus, Aarhus School of Business, Department of Management.
    8. Petrick, Martin, 2004. "Governing Structural Change And Externalities In Agriculture: Toward A Normative Institutional Economics Of Rural Development," IAMO Discussion Papers 14878, Institute of Agricultural Development in Transition Economies (IAMO).
    9. Darcy W. E. Allen & Chris Berg & Sinclair Davidson & Jason Potts, 2022. "On Coase and COVID-19," European Journal of Law and Economics, Springer, vol. 54(1), pages 107-125, August.
    10. Bachev, Hrabrin, 1999. "Организация На Аграрните Иновации [Organisation of agrarian inovation]," MPRA Paper 76498, University Library of Munich, Germany.
    11. Haucap, Justus, 2021. "Glücksspielregulierung aus ordnungsökonomischer Perspektive," DICE Ordnungspolitische Perspektiven 110, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    12. Mehrdad Vahabi, 2011. "Appropriation, violent enforcement, and transaction costs: a critical survey," Public Choice, Springer, vol. 147(1), pages 227-253, April.
    13. Bachev, Hrabrin, 2008. "Governing of agrarian innovations," MPRA Paper 7784, University Library of Munich, Germany.
    14. Lawrence W C Lai & Valerius W C Kwong, 2012. "Racial Segregation by Legislative Zoning and Company Law: An Empirical Hong Kong Study," Environment and Planning B, , vol. 39(3), pages 416-438, June.
    15. Ullberg, Eskil, 2015. "Trade in Ideas: Performance and Behavioural Properties of Markets in Patents with Two-part Tariff," Ratio Working Papers 261, The Ratio Institute.
    16. Ervin, David E. & Fox, Glenn, 1998. "Environmental Policy Considerations In The Grain-Livestock Subsectors In Canada, Mexico And The United States," Proceedings of the 4th Agricultural and Food Policy Systems Information Workshop 1998: Economic Harmonization in the Canadian\U.S.\Mexican Grain-Livestock Subsector; 16754, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    17. Pelikan, Pavel, 1986. "How Do New Technologies Fare under Different Institutional Rules?," Working Paper Series 169, Research Institute of Industrial Economics.
    18. Antonelli Cristiano, 2012. "Compulsory licensing: the foundations of an institutional innovation," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201207, University of Turin.
    19. Alison Brown & Colman Msoka & Ibrahima Dankoco, 2015. "A refugee in my own country: Evictions or property rights in the urban informal economy?," Urban Studies, Urban Studies Journal Limited, vol. 52(12), pages 2234-2249, September.
    20. Richa Shukla & Surajit Bhattacharyya & K. Narayanan, 2016. "Firm Size vis-Ã -vis Industry Size and Innovation in a Dominant Firm-fringes Oligopoly Model," Foreign Trade Review, , vol. 51(1), pages 13-25, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s0264837719319362. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.