The Ideas of Ronald H. Coase by Lai Lawrence W. C.;

Author:Lai, Lawrence W. C.; [Lai, Lawrence W.C.]
Language: eng
Format: epub
Publisher: Taylor & Francis Group
Published: 2022-08-15T00:00:00+00:00

It would be easy to condemn private property and market mechanisms for this run astray effort of a private developer. However, to do so would confuse the issue of contract enforcement with the institutional structure as a whole, as when someone blames the system of stock trading for Enron or blames democracy for campaign violations. The reason for the failure of CBE to stay on the redevelopment direction of line b-e in Figure 5.3 should be treated as a failure of a principal-agent problem between the state and the private developer. The alternative of the whole redevelopment process being structured by the state could be worse, as it lacks incentives and an implicit value assessment process that can be provided only by the market.

The role of a private developer in any redevelopment effort cannot be underestimated, as an interview reported a continuous hope for private efforts at Britannia Beach:

Two years ago, the company promised to hand over ownership to residents in the form of a coop in exchange for their support of a controversial proposal. Copper Beach Estates wanted to finance the construction and operation costs of a treatment plant by turning the mine’s open pits into a landfill for contaminated soils. That proposal fell through.

(CBC Canada 2004)

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