Lease Revenue Research Articles

Drivers of urban sprawl in urbanizing China – a political ecology analysis

Chinese cities have undergone a process of urbanization that has resulted in significant urban sprawl in the past 20 years. This paper uses the “ecology of actors” framework to analyse the interactions among various state, market and civil society players that result in excessive land conversion from agricultural to urban use. The paper shows that under the existing institutional settings, the interests of most actors involved in the process are aligned towards greater land development and growth. The more land is developed, the more land lease revenue for the local government, the more profit for developers, and the more opportunities for compensation for farmers. Planners have been powerless to apply long-term planning principles. There is a need to change the underlying rules of the game so that environmental impacts of land conversion are fully taken into account in the future economic calculations of actors involved in the process.

Mentalidade possessória e práticas rentistas dos jesuítas (América portuguesa, séculos XVI, XVII e XVIII)

RESUMO Este artigo busca esclarecer como os padres jesuítas encaravam a propriedade da terra e o rentismo fundiário, nos quase duzentos anos em que estiveram presentes na América portuguesa. Postulamos que os jesuítas carregaram para os trópicos sua "mentalidade possessória" europeia, mas que, a partir de novas experiências, eles fizeram escolhas e orientaram suas "práticas possessórias" frente aos direitos de propriedade seus e de outrem. Nosso objeto são os contratos de aforamento e enfiteuses de terras destes padres. Dada a existência de farta bibliografia sobre os jesuítas, consideramos ser possível nos fiar nas fontes nela referenciadas, que consistem, basicamente, em material do Fondo Gesuítico dos Arquivos da Companhia de Jesus, no Vaticano, e do Cartório Jesuítico, nos arquivos da Torre do Tombo, em Portugal.

Optimal imperfect preventive maintenance policy for equipment leased during successive periods

In this paper, we consider randomly failing equipment leased several times during their life cycle with a given warranty period. A mathematical model is developed to determine the optimal efficiency levels of preventive maintenance (PM) to be performed on the equipment between successive lease periods, maximising the expected total profit of the lessor over the equipment life cycle. The model considers the expected leasing revenue as well as the equipment acquisition cost and the average PM and repair costs. PM actions allow reducing the age of the equipment to a certain extent with a corresponding cost depending on the PM level adopted. The efficiency of the PM is determinant of the expected revenue during the next lease period. Given a set of K possible PM levels and the number of lease periods n over the equipment life cycle, Kn−1 PM strategies are possible. A genetic algorithm is proposed in order to obtain nearly optimal policies in situations where the number of possibilities Kn−1 is very high. Obtained numerical results are discussed. Small- and big-size instances of the problem are considered in the case of a service company in the oil and gas industry specialised in leasing specific equipment such as separators, to oil companies for production activities with a limited duration of several months like well testing or short production tests.

Producing nature for public: Land-based urbanization and provision of public green spaces in China

The landscapes and infrastructures of cities have long been viewed as products of human–nature interaction. This paper sheds new light on how a critical constituent of urban landscape and infrastructure, urban public green spaces, has been produced in China's ongoing profound urbanization process. Over the past decade, China's urbanization has been characterized by a land-based pattern centered on the commercialization and capitalization of urban land induced by the decentralization of state power. The non-budgetary revenues generated from urban land leasing hold the promise to empower local governments' fiscal capacity and flexibility in financing various urban infrastructures aiming to enhance local amenities and attract external investment. This paper investigates the impact of land-based urbanization on the provision of urban public green spaces, an integrated part of urban public infrastructure, using panel data across 285 Chinese prefecture cities from 2002 to 2009. The results reveal a negative relationship between the reliance on land finance and the amount of urban public green spaces, indicating that local governments' pursuit of maximizing land lease revenue will not be able to finance more public green spaces, and may even cause the loss of public green spaces. The regional variations amongst the eastern-coastal, central, and western cities confirm that an initially positive relationship between land finance and the provision of urban public green spaces at the early stage of development would reverse to a negative relationship with the increasing pace of urbanization and economic development, which may lead to a social inequity pertaining to public accessibility to urban green spaces. A balance amongst economic growth, environmental concerns, and social equity is very much needed in the quest for sustainable development.

MAKING PUNISHMENT PAY: The Political Economy of Revenue, Race and Regime in the California Prison Boom.

Sociologists have neglected the politically channeled and racially connected role of leveraged debt in mass incarceration. We use qualitative and quantitative data from California, circa 1960-2000, to assess how Republican entrepreneurial leveraging of debt overcame contradictions between parochial preferences for punishment and resistance to paying taxes for building prisons. The leveraging of bond debt deferred and externalized the costs of building prisons, while repurposed lease revenue bonds massively enlarged and extended this debt and dispensed with the requirement for direct voter approval. A Republican-dominated punishment regime capitalized debt to build prisons in selected exurban Republican California counties with growing visible minority populations. We demonstrate that the innovative use of lease revenue bonds was the essential element that enlarged and extended funding of California prison construction by an order of magnitude that made this expansion a boom. With what Robert Merton called the consequences of imperious interest, this prison expansion enabled the imprisonment of an inordinately large and racially disproportionate inmate population.

Financing new metros—The Beijing metro financing sustainability study

China invested intensively in metro system to accommodate its urbanization since 2000. This research seeks to understand how local governments finance these investments and whether the current financing strategies are likely sustainable for many years to come. This study discusses the nature of metro financing mechanism and uses Beijing׳s metro system as a case to examine the financing sustainability. By calculation, Beijing government faces immediate financial challenges in 2012 and 2013 as the metro expenses are around 10% of government׳s revenue. The financing sustainability is largely influenced by the local land leasing revenue. If property values collapse, financial sustainability could be a serious problem in the future.

Lease revenue reporting on the side of lessor in connection with transfer of right to use assets (RTU) to lessee

The paper analyzed some of the approaches whose application is eligible for the recording of lease contracts on the side of lessor so that this recording display as closely as possible the essence of the lease relationship and at the same time it would be symmetrical to the way of recording on the side of lessee resulting not from value of transferred physical assets but from the evaluated right to use this asset. Impacts of individual variants of approaches into the income statement and statement of financial position are analyzed. It turns out that apparently it is not possible to apply only one approach (as it is in the case of lessee), without gross distortion of the financial position of the lessor. Some of the options of derecognition approach truly shows the situation, especially in long-term leases and leases where the risks and rewards associated with the lease are transferred to the lessee, for the other leases it is recommended sometimes to use underecognition property from the assets of the lessor during the lease period, but rather report a liability to leave to lessee to use (performance obligations approach). Compared with the current method of recording an operating lease, this approach without taking into account the cost of maintenance leads to another course of reporting profits (rise in the early stages against the growth in the final stages), but also brings a more fundamental problem, and it is overvaluation of lessor’s assets. In addition, it is possible to doubt about the correctness to report such liability as an unconditional liability. The approach is also not consistent with the IASB and the FASB project that is devoted to the recognition of revenues. The possible way, according to author’s opinion, might be regulation of existing model of reporting operating lease or derecognition approach.

Visual Representation of Accounting Standards

The new normal in the regulatory environment of financial reporting is rapid changes in accounting standards with large philosophical and conceptual shifts in underlying principles. For example, in the realm of the International Financial Reporting Standards (IFRS), newly issued IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 13 Fair Value Measurement have significant impacts on the future of financial reporting. Further, the exposure drafts on lease accounting and revenue recognition are likely to be released in the year 2014 that would change well-established accounting approaches. An accounting professor faces the tremendous challenge of equipping students to deal with the rapid change in accounting standards. This paper offers a project assignment that accounting professors teaching the Advanced Financial Accounting (AFA) course can use to instil in students the skills of analyzing and deconstructing the logical flow of an accounting standard. This project assignment has been rated on “quality and usefulness” by students as “most useful” at a very high score of 6.54 out of a perfect score of 7, which is 95th percentile in the university-wide ranking.

ANALISIS PENGARUH KREDIT CEPAT AMAN (KCA), KREDIT ANGSURAN SISTEM FIDUSIA (KREASI), KREDIT ANGSURAN SISTEM GADAI (KRASIDA), DAN KREDIT SERBA GUNA (KRESNA) TERHADAP PENDAPATAN SEWA MODAL PADA PT. PEGADAIAN (PERSERO) KANWIL VI MANADO

The services product of PT. Pegadaian ( Persero) , are Credit Fast Secure, Installment Loans Fiduciary System, Installment Loans Pawn System, and Multipurpose Loan. Customer will repay the loan with interest in this case is a capital lease is revenue that received of PT. Pegadaian ( Persero) by loans extended. In line with the growth of the existing business can be seen the increase of lease income on lending capital that during 2006 to 2011. This research is analyze the causal’s relationship to examine the effect of the fact and phenomena and seek factual information to research that explained on the effect of Credit Fast Secure, Installment Loans Fiduciary System, Installment Loans Pawn System, Multipurpose Loan on Capital Lease Revenue at PT. Pegadaian ( Persero) Regional Office VI Manado which is a services products on offer to the public. From these research it can be concluded that Credit Fast Secure, Installment Loans Fiduciary System, Installment Loans Pawn System, Multipurpose Loan, have influence on Capital Lease Revenue at PT. Pegadaian ( Persero) Regional Office VI Manado have increase from year to year.

Hedonic Analysis of Auctioned Hunting Leases: A Case Study of Mississippi Sixteenth Section Lands

This analysis evaluates factors affecting the value of hunting leases on Sixteenth Section Lands in Mississippi using hedonic analysis. These lands are owned by the state and hunting rights are auctioned to the public. Because these market data are generated in a competitive setting, this analysis has certain advantages over previous investigations of hunting lease markets, which relied on surveys of non-industrial private landowners to elicit information about their hunting leases or contingent valuation methods to infer lease values from landowners or hunters. Due to the competitive nature of the issuance of Sixteenth Section leases, their prices better reflect the full impact of lease characteristics such as cover type, game quality, distance to urban areas, and location on hunter valuation of hunting access. Estimates of the implicit prices of these characteristics suggest that land managers should adopt shorter lease lengths, smaller lease sizes, and improve habitat to increase lease revenue.

A Proposal of Institutional Innovations for Urban-Rural Coordinated Development in China

This paper analyzes urban-rural coordinated development in a region, where big city and large rural area coexist, and proposes some major institutional innovations. Our basic assumptions include: the existence of large rural area cannot be changed in the short term; people's mobility will continue to increase in metropolitan areas; long-term discrimination against peasants will disappear. We submit that urban-rural coordinated development is not equivalent to urban-rural integration, regional urbanization or urban-rural equalization. Local public goods and social welfare should be different by areas instead of by people's occupation or social status. Local public finance should be reformed to rely on property tax instead of landing leasing revenue. The efficiency, integrity and representation of peasant collectives is the key to reforms in the countryside. Voluntary organizations should be emphasized at neighborhood level and local governance structure should be simplified in metropolitan areas.

SPE Foundation Supports, Augments Society Programs

The SPE Foundation has a single purpose: to support and augment society programs through supplementing the normal funding capabilities of SPE. In carrying out its mission, the foundation helps to ensure excellence in SPE programs through a partnership among individuals, industry, and the society. The foundation is composed of all living past presidents of SPE and is directed by an executive committee comprising a president, past president, secretary, treasurer, and two vice presidents, as well as the sitting president and immediate past president of SPE. Established in 1977 and legally incorporated as a nonprofit entity separate from SPE, the foundation raised the funds to build a permanent home for the society in Richardson, Texas. The Richardson office building was completed in 1984 and is owned by the SPE Foundation, which leases it to the society. Approximately 85% of the lease revenue is given back to SPE to support its programs. A major beneficiary is the Distinguished Lecturer program, which receives 50% of its yearly budget from the foundation. Voluntary contributions from SPE members help to support the foundation. While the foundation receives no funds from SPE members' annual dues, a dues-statement-checkoff option has facilitated contributions by enabling members to elect to contribute concurrently with their dues payments. The foundation funds and administers the Gus Archie Memorial Scholarships, awarded to outstanding incoming college freshmen undertaking petroleum engineering curricula, and the Nico van Wingen Memorial Graduate Fellowships in Petroleum Engineering, awarded to SPE student chapter members at the PhD level who intend to pursue careers in academia. When special SPE projects arise, the society can call upon the foundation to help fund them. During the 1990s, funds from the foundation helped to finance a society initiative to place all SPE technical papers on CD-ROMs. Then came the biggest project undertaken by the SPE Foundation since construction of the Richardson office—the highly successful effort to raise the funds needed to upgrade the spe.org website into a comprehensive knowledge portal connecting users online with the full spectrum of society, career, technical, educational, and industry resources available through SPE. Having committed USD 5 million of SPE funds to the project, the society turned to the foundation in 2000 to raise an equal amount to finance the balance of the initiative. "We were delighted to see this come along; this was just the kind of thing we had wanted to do," said Dennis Gregg, then immediate past president of the SPE Foundation and cochairperson of the fund-raising campaign along with Don Stacy, foundation president at the time. In keeping with a foundation decision made at the outset, all funds solicitation was done by members of the SPE Foundation or the society. The foundation selected a campaign cabinet to carry out the funding drive and worked with a fund-raising consultant, who provided strategic advice.

Hedonic Analysis of Hunting Lease Revenue and Landowner Willingness to Provide Fee-Access Hunting

Abstract Selling hunting access may supplement household income, yet only a small proportion of nonindustrial private (NIP) landowners in United States lease the right to hunt their land. Based on a survey of Mississippi landowners, the decision to lease hunting rights and factors influencing lease revenue per leased hectare were analyzed. The two issues were jointly modeled consistent with Heckman's sample selection model, and the lease revenue was specified in accordance with hedonic pricing theory. Empirical results showed that landowner concerns about loss of privacy, accident liability, and conflicts with personal use of land reduced the likelihood of leasing; total landownership and specific landowner characteristics increased it. With regards to factors explaining differences in lease revenue per leased hectare, bottomland hardwoods commanded a greater premium than many other land uses. In addition, lease revenue per hectare was distinctly higher where a landowner had expertise in managing a hunting lease enterprise. These findings have implications for landowners interested in managing wildlife-associated enterprises and public agencies engaged in the provision of natural resource-based recreation.

Management Policy and Estimated Returns on School Trust Lands

Every state entering the Union since 1803 received land grants from the federal government for the support of their respective public school systems. Inherent in this federal grant is the fiduciary duty to prudently and effectively manage these assets for the beneficiary, their school systems. We develop a framework that measures the present value of the beneficiary’s economic benefits to assist managers of school trust lands in determining future management policy. Using this framework, we assess whether managers of state school trust lands are currently meeting their fiduciary responsibilities of “maximum economic benefit” for their beneficiaries or whether changes in management policy are needed. The present value of realized economic returns from grazing lease revenues and capital appreciation are compared with the present value of income streams that may be generated from alternative investments available to the land trustees if the land were sold and the proceeds reinvested in U.S. Treasury securities. Market values and capital appreciation for school trust lands in Wyoming are estimated using hedonic models formulated from ranch sales data. Because we are comparing a risky return on land investments with a riskless return on Treasury bonds, we observe, in most cases, that the sale of land andreinvestment of proceeds will increase economic benefits on school trust lands.

Economic Comparison of Commodity and Conservation Program Benefits: An Example from the Mississippi Delta

Changes to commodity programs in the 2002 Farm Bill increased the value of crop base acreages on which decoupled payments are received. The bill also expanded the availability of key conservation programs. This paper compares the value of payments from commodity programs (along with continued crop production) to the easement payment (and recreational lease revenue) available under the Wetland Reserve Program. A net present value model using risk-adjusted returns is employed in the analysis for Mississippi delta cropland containing rice, cotton, and soybean base. Sensitivity analysis is conducted on some of the key variables affecting the decision.

Estimating Air Emissions for BP's Permian Basin Gas Plants and Oil and Gas Properties

Summary A system to estimate emissions from large numbers of oil and gas producing properties and gas plants was developed by BP's Permian asset environmental group. The system estimates air emissions on a quarterly basis for both internal and external reporting requirements. An additional benefit has been increased lease revenues from improved operating efficiencies identified by the system. The results of the emissions-reporting system enabled BP to accurately estimate the emissions from each property. Emissions for the Permian asset were quantified. Internal and external reporting requirements were integrated. Lease-gas use was reduced by optimizing fuel burned and the use of bleed-gas-operated equipment. The study also helped prioritize additional engineering work to look at fuel consumption in fired equipment.

A Relationship of Trust: Are State “School Trust Lands” Being Prudently Managed for the Beneficiary?

Every state entering the Union in the United States since 1803 received land grants from the federal government for the support of their public schools. Inherent in this federal grant is the fiduciary duty to prudently and effectively manage trust assets for the beneficiary, their school systems. This paper addresses the question of whether managers of trust lands are meeting their fiduciary responsibilities of “maximum economic benefit” for their beneficiaries. Realized market value-based economic returns from grazing lease revenues and capital appreciation for all twenty-three counties in Wyoming are compared with returns that may have been generated from alternative investment policy alternatives. Market values and capital appreciation for school trust lands in Wyoming are estimated from hedonic models formulated from ranch sales data and grazing revenue data.

Role of Small Oil and Gas Fields in the United States

With the maturation of oil and gas production operations in a province or country, fields found by new-field wildcats diminish in size. The actual economic size cutoff is a function of such factors as depth, water depth offshore, and accessibility to transportation infrastructure. Because of the constraint of resource availability, price is now the principal force driving drilling activity. The proportion of new-field wildcats to other exploratory wells has fallen in recent years, but success in new-field wildcats has risen to about 20%. However, only very small fields, less than 1 million BOE, are being found in large numbers. The 200 largest companies, based on lease revenues, drill 30% of all wells and 44% of the footage, and they make 83% of drilling expenditures. The 20 largest companies alone find 60% of the large fields and 20% of the small ones. Through 1979, almost 93% of known gas fields and 94.5% of known oil fields were small, yet they contain only 14.5% of the ultimately recoverable gas and 12.5% of the oil. However, small fields are less capital intensive than equivalent-capacity synthetic-fuel plants, they are extremely numerous, and they are relatively easy and inexpensive to find and put on production.

Results of Recent U.S. Outer Continental Shelf Lease Bidding

Summary The larger number of leases offered in area-wide sales has lowered the average number of bids per lease. Yet, the number of competing bids for leases of the same bidder interest has been stable and almost equal to that for non-area-wide sales. Data The SPE Senior Technical Editor recently asked pertinent questions in JPT about competition in Outer pertinent questions in JPT about competition in Outer Continental Shelf (OCS) Sale 72, the first Gulf of Mexico area-wide offering. The use of a mixed Poisson distribution model (3MP) that groups leases into three classes (no, low, and high bidder interest) triggered the questions. Table 1 shows 3MP results for Sale 72 plus subsequent area-wide sales and other recent sales. The Poisson means of competing bids were stable for leases with the same level of bidder interest, but a much larger fraction of leases were in the no bidder interest class in the area-wide sales. An opposite and wrong conclusion can be drawn comparing only the average number of bids per lease. A current OCS lease policy issue is whether more leases should be offered with a royalty or profit share stipulation. That stipulation which engenders more competition is more desirable. Two reports from the U.S. General Accounting Office (GAO) use an average number of bids per lease to measure competition. Table 2 shows 3MP results for three sales with both fixed royalty and profit share offerings. Profit share offerings were almost devoid of no-bidder-interest leases. Poisson means were about the same or higher for fixed royalty as compared to profit share leases with the same bidder interest. Opposite conclusions would be drawn using the GAO measure of competition. The Senior Technical Editor also noted that brevity is a merit in these writings. Without resorting to the sophisticated syntax of the burgeoning discipline of model validation, the validation of 3MP, previously expunged for brevity, will be addressed using a crude analogy. Suppose you have some homing pigeons and want to know how well individual pigeons can get home. Presumably some pigeons may be more sensitive to Presumably some pigeons may be more sensitive to dishevelment than others. The better pigeon would find its way home even when subjected to severe dishevelment. This is, in essence, exactly how 3MP was tested. Known underlying distributions were disheveled by a random multiplier. The Sept. 12, 1972, OCS sale, which was the worst-fitting of the 31 sales in our original data, provided an outlying reference. When distributions provided an outlying reference. When distributions disheveled severely as compared to the outlying reference reproduced the underlying 3MP parameters, 3MP was accepted. Validation by reproduction of underlying parameters from disheveled data has no intrinsic connection with statistical goodness of fit. This is obvious from the homing pigeon analogy. One also could measure the directness of a pigeon's path from the start to its home. Some pigeons might flit back and forth but still arrive home. Others might take a direct path ending far from home. Any of a multitude of statistical goodness-of-fit tests could measure a pigeon's directness of path; however, all are meaningless or, at best, peripheral to assessing a pigeon's ability to get home. Thus, goodness-of-fit tests pigeon's ability to get home. Thus, goodness-of-fit tests can be ignored. Questions about the correct use of the right data for 3MP studies cannot be ignored, however. I was the originator of the Lease Production and Revenue data base and obtained the source data for the 31 sales studied originally from that data base. Many investigators received the data and obtained results agreeing with ours. The exception was the work referred to but not presented, no doubt for brevity, by Bruckner and presented, no doubt for brevity, by Bruckner and Nachstheim in the July 1983 JPT. When I saw their detailed work, I concluded there was some calculational error. Neither that work nor their data appear available now. The reason for the difference can only be surmised with no resolution possible. Fortunately, that indeterminate status need not prevail for 3MP results given here. All raw data are available. Detailed 3MP results along with the computer program (in BASIC) that produced them are available. Brevity precludes their inclusion here. precludes their inclusion here. JPT P. 1509