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The use of strong and weak form sustainability to assist in rate development for the valuation of exhaustible resources (part II)

Grissom, TV, McCord, Michael, Davis, Peadar and McCord, John (2014) The use of strong and weak form sustainability to assist in rate development for the valuation of exhaustible resources (part II). Property Management, 32 (4). pp. 295-311. [Journal article]

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URL: http://www.emeraldinsight.com/journals.htm?issn=0263-7472&volume=32&issue=4

DOI: 10.1108/PM-03-2013-0018


AbstractPurpose –This paper is the second of a two part series which offers new theoretical and empirical insights investigating the rates structures appropriate for exhaustible resources with a particular emphasis on urban land, based upon the differentiation of strong- and weak-form sustainability concepts constrained by the objectives of the sustainable criterion of Daly and Cobb (1994). The integration of the concepts and objectives allow the theoretical formulation of discount and capitalization rates that can be empirically tested. This empirical application employs data from 12 diverse national economies. The paper aims to discuss these issues.Design/methodology/approach – The paper integrates the concepts of discount rate development for environmental and long-term assets and discounted utility analysis to the policy concerns associated with the valuation of public and sustainable resources. The new approach empirically shows the diverse issues of competing sustainable objectives across nations.Findings – The potential and degree of strong-form or weak-form sustainability application in each nation enabled the identification as to whether alternative capital as defined by the modified Ramsey model used per nation, or the marginal rate of resource return as defined by strong form objective of a constant natural resource endowment, can identify which form of capital becomes the major constraint on the resource valuation and allocation decision appropriate within each nation. The findings showed constraints on nation resource endowments relative to population needs and the culture preferences endemic across nations.Originality/value – The findings serve as a basis for future research on the optimal levels ofsustainable development appropriate for different nations, the impactions of the timing and level of capital re-switching associated with the application of strong- or weak-form sustainability and the develop of rate and risk measures that can assist in the consideration of sustainable resource as a distinct asset class

Item Type:Journal article
Faculties and Schools:Faculty of Art, Design and the Built Environment
Faculty of Art, Design and the Built Environment > School of the Built Environment
Research Institutes and Groups:Built Environment Research Institute > Centre for Research on Property and Planning (RPP)
Built Environment Research Institute
ID Code:29869
Deposited By: Dr Michael McCord
Deposited On:07 Aug 2014 11:23
Last Modified:17 Oct 2017 16:15

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