Abstract
Using data of 1.4 million non-aggregate, publicly available, private residential property resale transactions for Hong Kong from 1991 to 2015, this paper addresses a public policy question raised by Demsetz from a Coasian angle. It estimates the impact of a less explored but ecologically problematic realm of renovation waste upon change of ownership of property units in a highly commodified property market. The estimate shows the extent and possibly high cost of the government in addressing negative externalities. Informed by the findings, this paper puts forward the recommendation of a prepaid lump sum waste monitoring levy, which is reimbursable upon self-reporting of waste generation. The collected information, when made open to the public, may help market forces to address poor building quality which causes legitimate major renovations and encourage better workmanship for future edifices.
Original language | English |
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Pages (from-to) | 145-151 |
Number of pages | 7 |
Journal | Waste Management |
Volume | 119 |
Early online date | 13 Oct 2020 |
DOIs | |
Publication status | Published - Jan 2021 |
Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2020 Elsevier Ltd
Funding
The author would like to thank Prof Lawrence Lai and Prof SNG Davies for the initial inputs, Prof KW Chau of the Department of Real Estate and Construction for the transaction data used for this paper. He is also grateful to Alvin Junus for his help with data cleaning.
Keywords
- Coase theorem
- Hong Kong
- Renovation waste
- Solid waste
- Transaction costs
- Waste levy