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The problem of non-optimal management of urban green areas in Warsaw

Author

Listed:
  • Zbigniew Szkop

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

In his paper the author looks at management of urban green areas in Warsaw as a principal agent problem. In the study the principal is the City Mayor, while the agent is institution responsible for managing street trees in Warsaw (ZOM). While the City Mayor is interested in enhancing the welfare of their constituency, the lower level officers do not have to be preoccupied with the same concerns - they are interested in maximizing their utility subject to some constraints imposed by their bosses. This is a standard hierarchical agency theory model. As the agent’s contract is not incentive compatible, the theoretical "residual claimancy" condition does not hold, and the species composition is different from what it would have been if the principal-agent model implemented was incentive compatible.

Suggested Citation

  • Zbigniew Szkop, 2017. "The problem of non-optimal management of urban green areas in Warsaw," Working Papers 2017-21, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2017-21
    as

    Download full text from publisher

    File URL: http://www.wne.uw.edu.pl/index.php/download_file/3862/
    File Function: First version, 2017
    Download Restriction: no
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    References listed on IDEAS

    as
    1. Kronenberg, Jakub, 2015. "Why not to green a city? Institutional barriers to preserving urban ecosystem services," Ecosystem Services, Elsevier, vol. 12(C), pages 218-227.
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    More about this item

    Keywords

    Principal-agent models; urban trees; ecosystem services;
    All these keywords.

    JEL classification:

    • H49 - Public Economics - - Publicly Provided Goods - - - Other
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R59 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Other

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