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Research Theme: Policy & Law

Research aimed at influencing or assisting policymakers, as well as scholarship on laws and policy related to the built environment

Stackelberg Game Theory-Based Optimization Model for Design of Payment Mechanism in Performance-Based PPPs

Shang, Luming; Aziz, Ahmed M. Abdel. (2020). Stackelberg Game Theory-Based Optimization Model for Design of Payment Mechanism in Performance-Based PPPs. Journal Of Construction Engineering And Management, 146(4).

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Abstract

Payment mechanisms lie at the heart of public-private partnership (PPP) contracts. A good design of the payment mechanism should consider the owner's goals in the project, allocate risks appropriately to stakeholders, and assure satisfactory performance by providing reasonable compensation to the private developer. This paper proposes a Stackelberg game theory-based model to assist public agencies in designing payment mechanisms for PPP transportation projects. The interests of both public and private sectors are considered and reflected by a bilevel objective function. The model aims to search for solutions that maximize a project's overall performance for the sake of social welfare while simultaneously maximizing return for the sake of private investment. A variable elimination method and genetic algorithm are used to solve the optimization model. A case study based on a real PPP project is discussed to validate the effectiveness of the proposed model. The solutions provided by the model reveal that the optimal payment mechanism structure could be established such that it would satisfy owners' requirements for overall project performance while optimizing project total payments to contractors.

Keywords

Construction Industry; Contracts; Financial Management; Game Theory; Genetic Algorithms; Investment; Optimisation; Organisational Aspects; Project Management; Public Administration; Transportation; Public-private Partnership Contracts; Good Design; Private Developer; Stackelberg Game Theory-based Model; Ppp Transportation Projects; Public Sectors; Private Sectors; Private Investment; Ppp Project; Optimal Payment Mechanism Structure; Project Performance; Project Total Payments; Stackelberg Game Theory-based Optimization Model; Performance-based Ppps; Public-private Partnerships; Analytic Hierarchy Process; Weighted Sum Method; Multiobjective Optimization; Algorithm; Incentives; Projects; Network; Success; Branch

The Geography of Diabetes by Census Tract in a Large Sample of Insured Adults in King County, Washington, 2005-2006

Drewnowski, Adam; Rehm, Colin D.; Moudon, Anne V.; Arterburn, David. (2014). The Geography of Diabetes by Census Tract in a Large Sample of Insured Adults in King County, Washington, 2005-2006. Preventing Chronic Disease, 11.

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Abstract

Introduction Identifying areas of high diabetes prevalence can have an impact on public health prevention and intervention programs. Local health practitioners and public health agencies lack small-area data on obesity and diabetes. Methods Clinical data from the Group Health Cooperative health care system were used to estimate diabetes prevalence among 59,767 adults by census tract. Area-based measures of socioeconomic status and the Modified Retail Food Environment Index were obtained at the census-tract level in King County, Washington. Spatial analyses and regression models were used to assess the relationship between census tract level diabetes and area-based socioeconomic status and food environment variables. The mediating effect of obesity on the geographic distribution of diabetes was also examined. Results In this population of insured adults, diabetes was concentrated in south and southeast King County, with smoothed diabetes prevalence ranging from 6.9% to 21.2%. In spatial regression models, home value and college education were more strongly associated with diabetes than was household income. For each 50% increase in median home value, diabetes prevalence was 1.2 percentage points lower. The Modified Retail Food Environment Index was not related to diabetes at the census-tract level. The observed associations between area-based socioeconomic status and diabetes were largely mediated by obesity (home value, 58%; education, 47%). Conclusion The observed geographic disparities in diabetes among insured adults by census tract point to the importance of area socioeconomic status. Small-area studies can help health professionals design community-based programs for diabetes prevention and control.

Keywords

Prevalence; Obesity; Us; Disease

Impact of Energy Benchmarking and Disclosure Policy on Office Buildings

Shang, Luming; Lee, Hyun Woo; Dermisi, Sofia; Choe, Youngjun. (2020). Impact of Energy Benchmarking and Disclosure Policy on Office Buildings. Journal Of Cleaner Production, 250.

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Abstract

Building energy benchmarking policies require owners to publicly disclose their building's energy performance. In the US, the adoption of such policies is contributing to an increased awareness among tenants and buyers and is expected to motivate the owners of less efficient buildings to invest in energy efficiency improvements. However, there is a lack of studies specifically aimed at investigating the impact of such policies on office buildings among major cities through quantitative analyses. In response, this study evaluated the effectiveness of the benchmarking policy on energy efficiency improvements decision-making and on real estate performances, by applying two interrupted time series analyses to office buildings in downtown Chicago. The initial results indicate a lack of statistically strong evidence that the policy affected the annual vacancy trend of the energy efficient buildings (represented by ENERGY STAR labeled buildings). However, the use of interrupted time series in a more in-depth analysis shows that the policy is associated with a 6.7% decrease in vacancy among energy efficient buildings. The study proposed a method to quantitatively evaluate the impact of energy policies on the real estate performance of office buildings, and the result confirms the positive impact of energy-efficient retrofits on the real estate performance. The study findings support the reasoning behind the owners' decision in implementing energy efficiency improvements in their office buildings to remain competitive in the market. (C) 2019 Elsevier Ltd. All rights reserved.

Keywords

Office Buildings; Building Failures; Time Series Analysis; Real Property; Energy Consumption; Metropolis; Building Performance; Chicago (ill.); Building Energy Benchmarking And Disclosure Policies; Building Energy Efficiency; Time Series Modeling; Energy Star (program); Building Management Systems; Buildings (structures); Decision Making; Energy Conservation; Maintenance Engineering; Time Series; Disclosure Policy; Energy Benchmarking Policies; Building; Benchmarking Policy; Energy Efficiency Improvements Decision-making; Estate Performance; Energy Efficient Buildings; Energy Star; Energy Policies; Energy-efficient Retrofits; Interrupted Time-series; Regression; Behavior; Designs; Building Energy Benchmarking And; Disclosure Policies; Buildings; Cities; Energy Efficiency; Energy Policy; Markets; Quantitative Analysis; United States

Free: Accounting for the Costs of the Internet’s Most Popular Price

Hoofnagle, Chris Jay; Whittington, Jan. (2014). Free: Accounting for the Costs of the Internet’s Most Popular Price. UCLA Law Review, 61(3), 606 – 670.

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Abstract

Offers of free services abound on the Internet. But the focus on the price rather than on the cost of free services has led consumers into a position of vulnerability. For example, even though internet users typically exchange personal information for the opportunity to use these purportedly free services, one court has found that users of free services are not consumers for purposes of California consumer protection law. This holding reflects the common misconception that the costs of free online transactions are negligible when in fact true costs may be quite significant. To elucidate the true costs of these allegedly free services, we apply a transaction cost economics (TCE) approach. Unlike orthodox economic theory, TCE provides a framework for analyzing exchanges in which the price of the product seems to be zero. Under a TCE analysis, we argue that information-intensive companies misuse the term free to promote products and services that involve numerous nonpecuniary costs. In so doing, firms generate contractual hazards for consumers, ignore consumer preferences for privacy, and mislead consumers by creating the impression that a given transaction will be free. While psychological research and behavioral economics may support an outright ban of free offers because of their biasing effects, TCE suggests reforming governance structures to place the business risks associated with free transactions more firmly in the hands of businesses. We suggest alterations to governance structures such as the Federal Trade Commission's Guide Concerning Use of the Word Free (FTC Guide) to curb the incentives of firms to raise transaction costs for consumers. The FTC Guide provides support for two of the consumer protection measures we propose: first, a requirement that free service providers clearly disclose that such providers seek users' personal information in exchange for those services, and, second, the establishment of a regular price before providers can market a service as free. We further argue that the recognition of users of free services as consumers for purposes of consumer protection law would better align incentives and ensure users access to legal redress against some of the most popular services on the Internet. Lastly, we suggest the adoption of alternative governance structures designed to reduce the cost of transacting by curbing the collection of personal information from consumers of free services and by enhancing the rights of consumers to govern the dispersal of personal information from free online services to third parties.

Keywords

Free Internet Service Providers; Internet Usage Monitoring; Transaction Cost Theory Of The Firm; Internet Privacy -- Law & Legislation; Law; United States. Federal Trade Commission; Vertical Integration; Privacy

Parking Policies in China’s Metropolises: Rationales, Consequences, and Implications

Liu, Qian; Chen, Peng; Sun, Feiyang. (2018). Parking Policies in China’s Metropolises: Rationales, Consequences, and Implications. Urban Policy & Research, 36(2), 186 – 200.

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Abstract

Metropolises in China, a rapidly motorizing nation, are confronted with the challenge of managing parking pressures. Given the generally increased affordability of cars, most local authorities are making efforts to provide more parking spaces to accommodate additional cars. Although the worldwide paradigm of managing parking is shifting from a supply-focused approach to a restraint mind-set, China has been slow to follow this trend. To untangle the factors that contribute to delays implementing desirable parking policy reforms, this paper examines the development of parking policies in China. This paper characterizes the challenge of parking in Chinese cities as a spatio-temporal mismatch. In the context of rapid motorization, local authorities are subject to political pressure to cater to the increased parking demand by increasing the minimum parking requirements. However, this approach fails to mitigate parking shortages and results in unintended consequences, including relatively high parking density in central and transit-rich areas and imbalanced parking across neighbourhoods. This paper suggests four strategies, including market-based pricing, geographically differentiated supply regulations, and district-based parking management (Parking management is referred to as various policies and programs that result in more efficient use of parking resources). These strategies represent policy-reform targets to establish more efficient parking systems in rapidly motorizing urban settings worldwide.

Keywords

Parking Facilities; Urbanization; Parking Lots; China; Minimum Parking Requirements; Motorization; Parking Policies; Parking Supply; Spatio-temporal Mismatch; Requirements; Minimum; Ownership; Future; Transportation; Cities; Pressure; Neighborhoods; Affordability; Local Authorities; Shortages; Regulation; Developmental Delays; Density; Parking; Reforms

The Practice of Roadway Safety Management in Public-Private Partnerships

Aziz, Ahmed M. Abdel. (2021). The Practice of Roadway Safety Management in Public-Private Partnerships. Journal Of Construction Engineering And Management, 147(12).

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Abstract

As a matter of course, the private party in public-private partnerships (PPPs) assumes the responsibility for roadway safety management (RSM). However, because most PPPs are performance-based, public highway agencies must articulate the specifications and methods they develop to enforce RSM practices. Despite the increased interest in PPPs in recent decades, little has been published on developing and propagating the RSM practices used with this delivery system. To fill this research gap and explore RSM practices in PPPs, this work took a synthesis research approach, using content analysis to critically review and analyze 16 PPP agreements in seven states and provinces leading in PPP contracting in North America. The study discovered several methods and organized them under five mechanisms: Mechanism 1, integrating roadway safety into project performance specifications and initiating new tools such as safety compliance orders; Mechanism 2, imposing nonconformance monetary deductions based on point and classification systems; Mechanism 3, regulating safety payments on the basis of crash statistics; Mechanism 4, promoting safety initiative programs; and Mechanism 5, enforcing administrative countermeasures such as work suspension and default/termination triggers for persistent developer noncompliance. Mechanisms 1 and 5 were the default mechanisms in all toll- and availability-based projects, whereas Mechanism 2 was common in availability-only projects. The research reviewed the RSM packages in the PPP agreements, elucidating the particulars of the RSM mechanisms, highlighting RSM design considerations, presenting implementation guidelines, and articulating research needs. The research results were validated against PPP highways in five other states and provinces. This synthesis research provides highway agencies with an extensive practice review to support RSM package design for future PPP projects.

Keywords

Qualitative Research; Incentives; Public-private Partnerships (ppps); Performance Specifications; Roadway Safety; Payment Mechanisms; Availability Payment; Highways

Possible Worlds: Henri Lefebvre and the Right to the City

Purcell, Mark. (2014). Possible Worlds: Henri Lefebvre and the Right to the City. Journal Of Urban Affairs, 36(1), 141 – 154.

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Abstract

There has been much attention paid recently the idea of the right to the city. This article argues that in order to fully appreciate the power of the idea, we should understand it through a close reading of Henri Lefebvre's body of work on the city and politics. Lefebvre presents a radical vision for a city in which users manage urban space for themselves, beyond the control of both the state and capitalism. However, while it calls for profound change, Lefebvre's vision is also eminently practical; it can very much serve as a guide and inspiration for concrete action to change the city today.

Housing Trajectories of Immigrants and Their Children in France: Between Integration and Stratification

Acolin, Arthur. (2019). Housing Trajectories of Immigrants and Their Children in France: Between Integration and Stratification. Urban Studies (sage Publications, Ltd.), 56(10), 2021 – 2039.

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Abstract

Immigrants have been found to exhibit different housing tenure patterns from the rest of the population in a number of contexts. This article tests whether observed differences in tenure in France can be explained by differences in socio-demographic characteristics or whether unexplained differences might result from housing market mechanisms that affect immigrants differentially from the rest of the population, and extends this to the second generation. The article relies on data from TeO, a survey of 21,761 persons designed to oversample and identify immigrants and their children, providing information about the outcomes of children of immigrants that is otherwise lacking in French statistics. The results indicate that while immigrants are significantly less likely to be homeowners, even after controlling for compositional difference, the gap in homeownership between the second generation and the rest of the population is smaller and not statistically significant. This suggests a progressive integration in the housing market over time and over generations rather than overall stratified housing trajectories. Differences in terms of the share of social housing residents, the level of residential crowding, and housing and neighbourhood characteristics also decline across generations. However, children of immigrants from some non-European origins are experiencing higher levels of stratification than other groups, with continued significant differences in tenure.

Keywords

Immigrants; Housing; Home Ownership; Children Of Immigrants; Housing Market; Social Stratification; France; Homeownership; Housing Trajectories; Tenure; Segmented Assimilation; Location Choices; Wealth; 2nd-generation; Discrimination; Segregation; Inequality; Quality; Markets; Demographics; Homeowners; Neighborhoods; Crowding; Statistical Analysis; Residential Patterns; Children; Trajectories; Residents; Residential Areas; Integration; Statistics; European Cultural Groups; Sociodemographics; Stratification; Demographic Aspects; Second Generation; Property; Public Housing; Noncitizens

Use of Health Impact Assessments in the Housing Sector to Promote Health in the United States, 2002-2016

Bever, Emily; Arnold, Kimberly T.; Lindberg, Ruth; Dannenberg, Andrew L.; Morley, Rebecca; Breysse, Jill; Pollack Porter, Keshia M. (2021). Use of Health Impact Assessments in the Housing Sector to Promote Health in the United States, 2002-2016. Journal Of Housing And The Built Environment, 36(3), 1277 – 1297.

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Abstract

Housing affects health, yet health is seldom considered in housing decisions. Health impact assessment (HIA) is a tool that can improve housing-related policies, plans, programs, and projects by bringing together scientific data, health expertise, and stakeholder engagement to identify the potential health effects of proposed decisions. We systematically identified and reviewed HIAs of housing decisions in the United States, yielding 54 HIAs between 2002 and 2016. Two examined federal proposals; the others explored decisions in 20 states. A variety of organizations led the HIAs, including non-profits, public health departments, and academic institutions. The primary decision-makers each HIA sought to inform were housing, planning, and/or elected officials. Eighteen HIAs focused on housing policies, codes, design elements, and utilities in residential structures. The remaining 36 HIAs included housing as one element of broader community development and transportation planning decisions. HIA recommendations changed decisions in some cases, and the assessment process helped strengthen connections between public health and housing decision-makers. To illustrate key characteristics of housing HIAs, we purposefully selected three HIAs and described the decisions they informed in detail: off-campus student housing in Flagstaff, Arizona; a rental housing inspections program in Portland, Oregon; and revitalization plans for a major thoroughfare in a suburb of St. Louis, Missouri. With a few exceptions, federal, state, and local agencies in the U.S. are not required to consider the health impacts of housing decisions, such as where housing is sited, how it is designed and constructed, and policies for ensuring that it is affordable and safe. HIA has emerged as a tool for advocates, health and housing practitioners, and policymakers to fill this gap. However, few studies have examined whether HIAs do in fact change housing decisions, shift the way that decision-makers think, or ultimately shift determinants of health (e.g., housing affordability and quality). This review demonstrates that HIAs can facilitate the consideration of health during housing decision-making. Housing HIAs can also help decision-makers address commonly overlooked effects, such as changes to social cohesion, and improve civic participation by engaging communities in the decisionmaking process.

Keywords

0; Community Development; Decision-making; Healthy Housing; Health Impact Assessment; Housing Policy; Stakeholder Engagement; Health Promotion; Public Health; Exceptions; Impact Analysis; Nonprofit Organizations; Affordability; Suburban Areas; Profits; Housing; Policy Making; Transportation Planning; Decision Making; Rental Housing; Public Officials; Policies; Regeneration; Utilities; Social Cohesion; Inspections; Community Involvement; Decision Makers; Community Participation; United States--us