This article is written from the viewpoint of an economic adviser counseling the cities of the Cagliari, Italy metropolitan area on the performance of the condono (literally, pardon or condonation) policy. The goal of this policy is the prevention of future abusivism, or widespread building code violations consisting mainly of the construction of residential volumes either without building permits or in contradiction to the issued building permit. It also provides the cities with the financial support necessary for the elimination of the underendowment of services and infrastructure caused by abusivism. This empirical work, based on a two-stage hedonic approach, defines and implements a research methodology and design to evaluate the monetary value of the excessive burden on existing public utilities generated by urban residential expansion. This research methodology and design offers powerful tools to define city fiscal policies that could successfully deal with value generated by urban residential expansion.
Get full access to this article
View all access options for this article.
References
1.
Auerhahn, E.1988. Implementing an impact fee system: Ten years of experience in Broward County, Florida. Journal of the American Planning Association54: 67-70.
2.
Avarello, P.1995. Libertà, regole e piano [Freedom, rules and planning activity]. Urbanistica Informazioni141: 3.
3.
Bartik, T. J.1987. The estimation of demand parameters in hedonic price models. Journal of Political Economy95: 81-88.
4.
Bartik, T. J.1988. Measuring the benefits of amenity improvements in hedonic price models. Land Economics64: 172-183.
5.
Blockstael, N. E. , K. E. McConnell, and I. Strand. 1991. Recreation. In Measuring the demand for environmental quality, edited by J. B. Braden and C. D. Kolstad. Amsterdam, the Netherlands: North-Holland.
6.
Blomqvist, G. , and L. Worley. 1981. Hedonic prices, demands for urban amenities, and benefits estimates. Econometrica50: 212-221.
7.
Boston Redevelopment Authority . 1991. Boston zoning code and enabling act. Boston: Author.
8.
Brown, J. N. , and H. S. Rosen. 1982. On the estimation of hedonic price models. Econometrica50: 765-768.
9.
Burby, R. J. , T. Beatley, P. R. Berke, R. E. Deyle, S. P. French, D. R. Goldschalk, E. J. Kaiser, J. D. Kartez, P. J. May, R. Olshansky, R. G. Paterson, and R. H. Platt. 1999. Unleashing the power of planning to create disaster-resistant communities. Journal of the American Planning Association65: 247-258.
10.
Burby, R. J. , P. J. May, and R. G. Paterson. 1998. Improving compliance with regulations: Choices and outcomes for local government. Journal of the American Planning Association64: 324-334.
11.
Cederna, A.1986. La libertà di scempio [The freedom of destroying]. Urbanistica Informazioni86: 5.
Clementi, A. , and F. Perego. 1983. La Metropoli spontanea: Il caso di Roma [The spontaneous metropolis: The case of Rome]. Bari, Italy: Laterza.
14.
Cropper, M. L. , and W. E. Oates. 1992. Environmental economics: A survey. Journal of Economic Literature30: 675-740.
15.
Dal Piaz, A.1985. Superare la pianificazione burocratica [Going beyond bureaucratic planning]. Urbanistica Informazioni81: 5.
16.
De Seta, C.1986. Il caos edilizio [The chaos of building activity]. Urbanistica Informazioni86: 6.
17.
Dickens, W. T.1984. Differences between risk premiums in union and nonunion wages and the case for occupation safety regulation. American Economic Review74: 320-323.
18.
Ellickson, B.1981. An alternative test of the Hedonic theory of housing markets. Journal of Urban Economics9: 56-57.
19.
Freeman, A. M. III . 1979. Hedonic prices, property values and measuring environmental benefits: A survey of the issues. Scandinavian Journal of Economics81: 158-173.
20.
Freeman, A. M. III . 1982. Air and water pollution. New York: John Wiley.
21.
Gegax, D. , S. Gerking, and W. Schulze. 1985. Perceived risk and the marginal value of safety. Working paper, U.S. Environmental Protection Agency.
22.
George, H., Jr.1971. How the book came to be written. In Progress and poverty, edited by H. George. New York: Robert Schalkenbach Foundation.
23.
Giovenale, F.1986. E se pagasse chi ha sbagliato? [What if people who make mistakes were forced to pay?]Urbanistica Informazioni86: 9.
24.
Graves, P. E.1991. Aesthetics. In Measuring the demand for environmental quality, edited by J. B. Braden and C. D. Kolstad. Amsterdam, the Netherlands: North-Holland.
25.
Greene, W. H.1993. Econometric analysis. New York: Macmillan.
26.
Harrison, D., Jr. , and D. L. Rubinfeld. 1978. Hedonic housing prices and the demand for clean air. Journal of Environmental Economics and Management5: 81-102.
27.
Indovina, F.1985. Battersi per più piano [Is it worth fighting for the expansion of planning practice]. Urbanistia Informazioni81: 6.
28.
ISTAT . 1981. Censimento della popolazione e delle abitazioni [Census of population and houses]. Rome, Italy: Istituto Poligrafico dello Stato.
29.
ISTAT. 1991. Censimento della popolazione e delle abitazioni. Rome, Italy: Istituto Poligrafico dello Stato.
30.
King, A. T.1976. The demand for housing: A Lancastrian approach. Southern Economic Journal43: 1077-1087.
31.
Lillydahl, J. H. , A. C. Nelson, T. V. Ramis, A. Rivasplata, and S. R. Schell. 1988. The need for a standard state impact fee enabling act. Journal of the American Planning Association54: 7-17.
32.
Macaluso, M.1986. Certe indignazioni si spiegano molto poco [Sometimes it is difficult to explain indignation]. Urbanistica Informazioni86: 6.
33.
Malavasi, P. , and C. Zoppi. 1989. Processo di evoluzione urbanistico della città di Cagliari dall’ottocento agli anni ottanta [The evolution process of urban planning of the city of Cagliari from the nineteeth century up to the eighties]. Quaderni di Ricerca dell’Istituto di Urbanistica della Facoltà di Ingegneria dell’Università di Cagliari3: 7-59.
34.
Melograni, C.1986. Le nostre posizioni sono apparse confuse [Our positions seemed confused]. Urbanistia Informazioni86: 14.
35.
Nicholas, J. C. , and A. C. Nelson. 1988. Determining the appropriate development impact fee using the rational nexus test. Journal of the American Planning Association54: 56-66.
36.
Nicholas, J. C. , A. C. Nelson, and J. Juergensmeyer. 1991. A practitioner’s guide to development impact fees. Chicago: American Planning Association Planners Press.
37.
Palmquist, R. B.1984. Estimating the demand for the characteristics of housing. Review of Economics and Statistics66: 394-404.
38.
Palmquist, R. B.1991. Hedonic methods. In Measuring the demand for environmental quality, edited by J. B. Braden and C. D. Kolstad. Amsterdam, the Netherlands: North-Holland.
39.
Parsons, G. R.1986. An almost ideal demand system for housing attributes. Southern Economic Journal53: 347-363.
40.
Perego, F.1985. Legale è meglio [Legal is better]. Urbanistica Informa-zioni. 81: 8.
41.
Piazzo, P.1996. Dossier 1/96. Insediamento abusivo: Un quadro generale ed un confronto ragionato nella prospettiva di un recupero [Dossier 1/96. Illegal settlements: A general survey and a reasoned comparative study with a recovery perspective]. Urbanistica Informazioni147: 24-28.
42.
République Française . 1983. Loi n. 83-8 du 7 janvier 1983 relative à la répartition de compétences entre les communes, les départements, les régions et l’Etat [Law n. 83-8 of January 7, 1983, Concerning the distribution of jurisdictions between cities, departments, regions and the state]. Journal Officiel de la République Française9: 215-230.
43.
Ridker, R. , and J. A. Henning. 1967. The determinants of residential property values with special reference to air pollution. Review of Economics and Statistics49: 246-257.
44.
Salzano, E.1985. La cultura dell’abusivismo condonato [The culture of legalized abusivism]. Urbanistica Informazioni80: 2.
45.
Simons, R. A. , R. G. Quercia, and I. Maric. 1998. The value impact of new residential construction and neighborhood disinvestment on residential sales price. Journal of Real Estate Research15: 147-161.
46.
Stanghellini, S.1994. Abusivismo edilizio: Il ministro degli interni si preoccupi [Building abusivism: The minister of the interior should be worried]. Urbanistica Informazioni135: 6.
47.
Thaler, R. , and S. Rosen. 1975. The value of life savings. In Household production and consumption, edited by N. Terleckyj. New York: National Bureau of Economic Research.
48.
Turtura, D.1985. L’abusivismo separa due Italie [Abusivism separates two Italies]. Urbanistica Informazioni81: 10.
49.
Zabel, J. E. , and K. A. Kiel. 1995. Estimating the demand for clean air in four United States cities. Unpublished manuscript.
