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Laboratory Experiments of Tradable Development Rights: A Synthesis of Different Treatments

Author

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  • Till Proeger

    (Chair of Economic Policy and SME Research, University of Goettingen, 37073 Goettingen, Germany)

  • Lukas Meub

    (Chair of Economic Policy and SME Research, University of Goettingen, 37073 Goettingen, Germany)

  • Kilian Bizer

    (Chair of Economic Policy and SME Research, University of Goettingen, 37073 Goettingen, Germany)

Abstract

Tradable development rights (TDR) are considered by scholars and regulators in various countries as a means of reducing land consumption efficiently. Similar to the development of CO 2 -certificate trading schemes, the methodology of experimental economics can be used to derive empirical evidence on the core parameters and problems of TDR schemes, thus extending theoretical modelling and evidence from case studies. Building on a common laboratory experimental framework, we discuss results from five distinct experiments that consider mechanisms of allocation, resilience against external shocks, political business cycles, communication and collusion, and risk. These results provide initial empirical directions for the further study and introduction of TDR schemes for managing and reducing environmental issues related to land consumption for building projects.

Suggested Citation

  • Till Proeger & Lukas Meub & Kilian Bizer, 2018. "Laboratory Experiments of Tradable Development Rights: A Synthesis of Different Treatments," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:6:p:1972-:d:152054
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