Planning Law And Economics

Planning, Law and Economics sets out a new framework for applying a legal approach to spatial planning, showing how to improve the practice and help achieve its aims. The book covers planning laws, citizens' rights and property rights, asking ‘What rules do we want to make and, where necessary, enforce? And how do we want to apply them in planning practice?’ This book sets out, in general and illustrated with concrete examples, how the three types of law mentioned above are unavoidably involved in all types of spatial planning. The book also makes clear that these laws can be combined in different ways, each way a particular approach to the practice of spatial planning (regulative planning, structuring markets, pro-active planning, collaborative planning, etc.). Throughout, the book shows what legal approaches can be taken to spatial planning, and uses a four-part framework to evaluate the effects of choosing such an approach. The spatial planning should be effective, legitimate, morally just and economically sound. In particular the book details why the economic effects for society are important and how spatial planning affects how the economic resources of land and buildings are used. The book will be invaluable to students and planners to understand the relationship between their actions and the basic principles of the rule of law in a democratic, liberal society.

What rights does the state have over privately owned land? Why should some landowners be favoured over others? How can the practice of land-use planning be improved? This book addresses these essential questions and shows that the interests people have in property rights over land and buildings are not just emotional but often financial too. It follows that the law, which affects who has property rights, what those rights are and how they may be used, can have great financial consequences for people and great economic consequences for society in general. For those reasons, looking at land-use planning as it affects and is affected by property rights illuminates some core aspects of land-use planning, including the law, economics, ethics and ideology. In this book, Needham examines those aspects from the clear perspective of property rights.

What rights does the state have over privately owned land? Why should some landowners be favoured over others? How can the practice of land-use planning be improved? This book addresses these essential questions and shows that the interests people have in property rights over land and buildings are not just emotional but often financial too. It follows that the law, which affects who has property rights, what those rights are and how they may be used, can have great financial consequences for people and great economic consequences for society in general. For those reasons, looking at land-use planning as it affects and is affected by property rights illuminates some core aspects of land-use planning, including the law, economics, ethics and ideology. In this book, Needham examines those aspects from the clear perspective of property rights.

From the beginnings of human association, social planning has been an accepted method for effecting improvements in community, regional, and national life. In Law and Economy in Planning, Walter Firey has made a start in the development of an intellectual framework that will give meaning to the craft of planning and establish a relationship between practice and first principles. In this study he investigates basic elements of this framework existing in two normative orders: the state, in which a collectivity has the obligation to enforce obedience; and the market, in which the individual has the right to be rational. These normative orders, whose laws are formulated in the disciplines of jurisprudence and economics, have a common concern with the utilization of scarce means to given ends. These orders, the state and the market, are formulated by the art of planning and have a common relationship to the natural order, which cannot be planned, but only predicted, and which is explained by the science of planning. To bridge the gap between the natural order and the normative order is the function of a philosophy of planning, for which an intellectual framework—of necessity interdisciplinary—is essential. This study is the culmination of several years of research in the fields of planning and social theory. During the course of this research Firey came to appreciate more and more keenly the need for an interdisciplinary formulation of the planning process and, with this, the need for a philosophical foundation for interdisciplinary work. A year’s fellowship at the Center for Advanced Study in the Behavioral Sciences at Stanford gave him the opportunity to develop his ideas bearing on this subject and to put them in writing.

''This is an important book. The authors in effect offer a positive theory of planning and urbanisation. As such, Webster and Lai''s model, based on institutional economics, is a vast improvement on some equally ambitious predecessors. The book''s insights and clarity make it a must reading for anyone seeking better understanding of how cities evolve as they do, and why planning is an integral part of their evolution.'' - Ernest Alexander, University of Wisconsin, Milwaukee, US ''A truly remarkable achievement.'' - Mark Pennington, University of London, UK ''Chris Webster and Lawrence Lai have created a coherent and insightful integration of concepts such as property rights, organizations, competition, incentives, transaction costs, public goods, and externalities, which will help theorists and urban practitioners analyze and manage city goods and services. An important insight of the authors is the recognition of the interdependencies of people in a neighborhood, which can be efficiently handled with shares in the property value of the neighborhood. There is a constant question of how much markets and how much government should be involved in urban matters, and the authors provide a reasoned, balanced approach which recognizes the vital role of government while appreciating the effectiveness of markets and decentralized decision making, including private institutions or" clubs" such as homeowners'' associations. Their position that governments and markets co-evolve and complement one another is sound, and their conclusions regarding the need to provide clear property rights and efficient rules provide us with theoretical tools to better understand how cities can be improved while being wary of the "allure of utopia".'' - Fred Foldvary, Santa Clara University, California, US ''This is a really important contribution to the planning literature. Beautifully written and clearly structured, it explains the complex relationship between" planning" and "markets" using the economic perspective of transaction cost theory and the" new-institutionalism". This provides a robust way of addressing the old "economic and planning" agenda, which the authors illustrate with references to cases and situations from across the world. Informative and stimulating, this should be included in every planning theory course, and will be helpful to all trying to re-think old debates about planning and markets.'' - Patsy Healey, Newcastle University, UK ''Professors Webster and Lai have written a masterly work that applies the principles of Hayek and of institutional economics to understanding cities. This is a refreshing and more convincing alternative to the standard politically correct views.'' - Harry W. Richardson, University of Southern California, US ''Property Rights, Planning and Markets covers an original and intriguing issue, viz. the existence and development of cities at the interface of market forces and planned or controlled policies ...the book offers new horizons and contains refreshing reading material.'' - Peter Nijkamp, Free University, Amsterdam, The Netherlands This book represents a major innovation in the institutional analysis of cities and their planning, management and governance. Using concepts of transaction costs and property rights, the work shows systematically how urban order evolves as individuals co-operate in cities for mutual gain. Five kinds of urban order are examined, arising as co-operating individuals seek to reduce the costs of transacting with each other. These are organisational order (combinations of property rights), institutional order (rules and sanctions), proprietary order (fragmentation of property rights), spatial order and public domain order. Property Rights, Planning and Markets also offers an institutional interpretation of urban planning and management that challenges both the view that planning inevitably conflicts with freedom of contract and the view that its function is a means of correcting market failures. Real life examples from countries and regions around the world are used to illustrate the universal relevance of theoretical generalisations, which will be welcomed by a new generation of policymakers and students who take on a world view that goes beyond national boundaries.

This volume embodies a problem-driven and theoretically informed approach to bridging frontier research in urban economics and urban/regional planning. The authors focus on the interface between these two subdisciplines that have historically had an uneasy relationship. Although economists were among the early contributors to the literature on urban planning, many economists have been dismissive of a discipline whose leading scholars frequently favor regulations over market institutions, equity over efficiency, and normative prescriptions over positive analysis. Planners, meanwhile, even as they draw upon economic principles, often view the work of economists as abstract, not sensitive to institutional contexts, and communicated in a formal language spoken by few with decision making authority. Not surprisingly, papers in the leading economic journals rarely cite clearly pertinent papers in planning journals, and vice versa. Despite the historical divergence in perspectives and methods, urban economics and urban planning share an intense interest in many topic areas: the nature of cities, the prosperity of urban economies, the efficient provision of urban services, efficient systems of transportation, and the proper allocation of land between urban and environmental uses. In bridging this gap, the book highlights the best scholarship in planning and economics that address the most pressing urban problems of our day and stimulates further dialog between scholars in urban planning and urban economics.

Countries which take spatial planning seriously should take planning law and property rights also seriously. There is an unavoidable logical relationship between planning, law, and property rights. However, planning by law and property rights is so familiar and taken for granted that we do not think about the theory behind it. As a result, we do not think abstractly about its strengths and weaknesses, about what can be achieved with it and what not, how it can be improved, how it could be complemented. Such reflections are essential to cope with current and future challenges to spatial planning. This book makes the (often implicit) theory behind planning by law and property rights explicit and relates it to those challenges. It starts by setting out what is understood by planning by law and property rights, and investigates - theoretically and by game simulation - the relationships between planning law and property rights. It then places planning law and property rights within their institutional setting at three different scales: when a country undergoes enormous social and political change, when there is fundamental political debate about the power of the state within a country, and when a country changes its legislation in response to European policy. Not only changing institutions, but also global environmental change, pose huge challenges for spatial planning. The book discusses how planning by law and property rights can respond to those challenges: by adaptive planning), by adaptable property rights, and by public policies at the appropriate geographical level. Planning by law and property rights can fix a local regime of property rights which turns out to be inappropriate but difficult to change. It questions whether such regimes can be changed and whether planning agencies can make such undesirable lock-ins less likely by reducing market uncertainty and, if so, by what means.