Delegating Eminent Domain Powers to Private Firms: Land Use and Efficiency Implications

Delegating Eminent Domain Powers to Private Firms: Land Use and Efficiency Implications Many private common carriers or regulated utilities have eminent domain powers in the U.S. The rationale resembles that for local governments; lower cost of assembling land for long distance electric transmission, gas and oil products pipelines, etc. Recent court cases raise questions about whether eminent domain allows firms to use inefficiently long indirect land corridors, inefficiently wide corridors, or higher value land when lower value land is available as an alternative? Despite the incentive to over-use capital under rate-of-return regulation, it turns out that the firm adopts an excessive land corridor width only to the extent that corridor width is tied to capital usage. For route selection, rate-of-return regulated firms follow the same Pareto rule that would be followed by an efficiency-oriented government when designating which land to take for a transmission route by eminent domain. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of Real Estate Finance and Economics Springer Journals

Delegating Eminent Domain Powers to Private Firms: Land Use and Efficiency Implications

Loading next page...
 
/lp/springer_journal/delegating-eminent-domain-powers-to-private-firms-land-use-and-xW0BC8kyil
Publisher
Springer US
Copyright
Copyright © 2010 by Springer Science+Business Media, LLC
Subject
Economics; Regional/Spatial Science; Financial Services
ISSN
0895-5638
eISSN
1573-045X
D.O.I.
10.1007/s11146-010-9260-5
Publisher site
See Article on Publisher Site

Abstract

Many private common carriers or regulated utilities have eminent domain powers in the U.S. The rationale resembles that for local governments; lower cost of assembling land for long distance electric transmission, gas and oil products pipelines, etc. Recent court cases raise questions about whether eminent domain allows firms to use inefficiently long indirect land corridors, inefficiently wide corridors, or higher value land when lower value land is available as an alternative? Despite the incentive to over-use capital under rate-of-return regulation, it turns out that the firm adopts an excessive land corridor width only to the extent that corridor width is tied to capital usage. For route selection, rate-of-return regulated firms follow the same Pareto rule that would be followed by an efficiency-oriented government when designating which land to take for a transmission route by eminent domain.

Journal

The Journal of Real Estate Finance and EconomicsSpringer Journals

Published: Aug 4, 2010

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off