Developing a model of financing for brownfield redevelopment : how to integrate contamination risks and legal & political risks?
- The paper presents first results and ideas from an ongoing project dealing with the construction of a private closed-end fund for the municipal area of Hannover, Germany. It is argued that for assessing the economic prospects of the project it is helpful to apply a Monte Carlo (MC) simulation approach. Thereby, it is possible to account for contamination risks. Questions that must be solved are (1) to find probability distributions for the uncertain variables and the correlations among these, (2) to adequately integrate legal and political parameters. Despite its merits with regard to accounting for contamination risks in investment appraisal a MC simulation may not be useful for every kind of risk. Integrating legal and political factors using a solely stochastic approach appears not to be convincing, since this kind of uncertainty results from the strategic interaction of agents. Therefore, the potential value of using game theory and institutional analysis is stressed.
Author: | Lars HolstenkampORCiDGND |
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URN: | urn:nbn:de:gbv:luen4-opus-141318 |
URL: | https://pub-data.leuphana.de/frontdoor/index/index/docId/115 |
ISBN: | 978-3-934409-33-0 |
Document Type: | Part of Proceeding |
Language: | English |
Year of Completion: | 2007 |
Date of Publication (online): | 2007/11/28 |
Contributing Corporation: | Bundesministerium für Bildung und Forschung |
Release Date: | 2007/11/28 |
Tag: | brownfield redevelopment |
GND Keyword: | Altlastsanierung; Finanzierung; Wirtschaftsrecht |
Source: | Towards more effective and sustainable brownfield revitalisation policies : a publication of the Research Program "Research for the Reduction of Land Consumption and for Sustainable Land Management" (REFINA) of the Federal Ministry of Education and Research (BMBF) |
Institutes: | Fak 2 - Wirtschaft und Gesellschaft (alt) / Recht/Wirtschaftsrecht |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |