Tradable Property Research Articles

Частка у статутному капіталі господарського товариства (корпоративний пай) як об’єкт речових та договірних прав

The article aims to define the legal nature and characteristics of a share in the authorized capital of a business entity as a specific object of property and contractual rights. The relevance of the research topic is because the analysis of Ukrainian corporate legislation does not provide a direct answer to the question of what the object of corporate investment is, and this creates difficulties in understanding both the essence and structure of legal relations arising from a person’s contribution to the charter capital of a business entity. Even though corporate relations have specifics, they are civil relations and should be considered within the framework of established civil law structures. The object of legal relations is a necessary element of the structure of legal relations. The objects of legal relations in which a person acquires a share in the charter capital of a legal entity and corporate rights instead of a contribution are a contribution (property) owned by a participant based on a right in rem (usually based on ownership), a share in the charter capital and corporate rights. A share in the charter capital of a business entity is a specific object in the field of property and contract law, which necessitates a special legal regime for it. The authors conclude that it is a share in the charter capital of a business entity that is the object of civil rights. The specificity of this object is determined by the fact that a share is a tradable property proper, which allows it to be an object of property rights and a subject matter of contract law. In property law, a share in the charter capital belongs to the shareholder who has contributed to the charter capital of a business entity. If a shareholder of a business entity is married and has contributed at the expense of the marital property, the share in the charter capital belongs to the spouses based on the right of joint ownership. Understanding a share as an object of property rights provides a company participant with substantive legal mechanisms for exercising and protecting its right to a share (full powers and protection through substantive legal claims). In contract law, the specifics of a share as an object of civil rights affect the determination of the moment of transfer of ownership under a contract. In this regard, the legislation should state as a rule that the moment of transfer of ownership of a share in the authorized capital under a contract is determined by the moment of its conclusion unless otherwise provided by the contract. Keywords: share in the charter capital of a business entity, corporate rights, real law, contract law, right of joint and several ownership, remedies in rem, subject matter of a contract, object of civil rights.

Establishing Property Rights through a Secure System of Land Title Management

Land is a critical economic asset in any economy. The need for a timely, accurate, safe, simple, secure, and universally accessible system of registering and recording land transactions and interest in land is the cornerstone of a proper land market. Such land markets are an important mechanism to empower the poor and reduce the costs of doing business.1 Secure property rights provide asset owners the incentive to invest in their property while allowing easier collateralisation. Without secure tradable property rights, land is ‘dead capital’.

Carbon Offsets are a Bridge Too Far in the Tradable Property Rights Revolution

Tradable property rights-based carbon offsets are widely used as a policy tool for combating the greenhouse gas emissions that cause climate change. However, academics, non-governmental organizations, and market participants have criticized carbon offset mechanisms’ economic inefficiency and dubious environmental benefits. This Article traces these criticisms to the microeconomic structure of the offset market. Offsets were envisioned as a way to use self-regulating market forces to stimulate investment in emissions mitigation projects efficiently, but tradable property rights are inherently ill-suited to that task. Consequently, policymakers ended up designing a Rube Goldberg-esque scheme that is neither efficient nor self-regulating. The financial intermediation industry through which offsets are certified and traded consumes approximately thirty percent of all carbon offset funding, such that less than seventy cents out of each dollar invested in international greenhouse gas mitigation reaches its target. At the same time, the private sector-led system inappropriately cabins the authority of public sector regulators — the only market participants with an incentive to ensure the environmental quality of the assets exchanged. Systemic risk is also a concern: the offset mechanism’s substitution of abstract, tradable securities for simpler contract-based lending bears an uncanny resemblance to developments in the securitized mortgage lending industry prior to the 2008 crisis. Direct subsidies issued to emissions-reducing projects by a publicly-administered fund could likely achieve better environmental outcomes at lower cost.

The State and Financialization of Public Land in the United Kingdom

There exists an influential and growing political-economic literature on the treatment of land—urban and rural—as a financial asset. But this literature pays little attention to the role of the state, beyond its obvious significance in the formalization of tradable property rights. In particular, the issue of the state's own land, i.e. public land, has been afforded scant scrutiny. Has the state, like other actors, increasingly come to treat the land it owns as a form of financial asset? And if so, how, and with what implications? This article addresses these questions by way of an empirical focus on the history of the UK public estate since the beginning of the 1980s.

Pricing the Eyes of Passersby

This paper explains the growth of the U.S. advertising industry around 1900 by showing how advertisers and advertising professionals established institutions and practices that converted audience attention into a form of tradable property. My empirical work on billposting illuminates the central role that the pursuit of monopoly played in constructing a commodity form of access to pedestrians’ gazes.

Organs as inheritable property?

It has been argued that organs should be treated as individual tradable property like other material possessions and assets, on the basis that this would promote individual freedom and increase...

Indigenous entrepreneurship in Samoa in the face of neo‐colonialism and globalization

PurposeThe purpose of this paper is to describe an in‐depth study of indigenous Samoan economic systems, to ascertain what aspects of the systems enable community values and innovation; what are the effects of neo‐colonial globalisation on the functionality of the systems, and what can be deduced about the best ways to ensure sustainable economic development of Samoan villages in face of globalisation.Design/methodology/approachParticipatory action research has been carried out continuously within two Samoan villages between 1995 and 2006. Grounded theoretical approaches have been critically utilised, based on primary data from within the villages, local Samoan literature and academic literature from multiple disciplines, including human ecology, postcolonial literature; indigenous knowledge (IK); entrepreneurship, and post‐Keynesian and development economics. Ethnographic detail is included in the presentation of grounded theoretical constructs.FindingsCommunity values are incorporated into business activities within the Samoan villages researched. Community values operate at two levels: that of an extended family and of the village comprising of extended families. Different sets of resources are available and managed by extended families and villages. The chief of each extended family is an entrepreneur as well as manager to ensure the economic viability and independence of their family, and that their capital base is enhanced. The chiefs of extended families form a village council which determines how village resources are utilised. The systems, based on IK, are functional to fulfil community values of equity and lack of poverty. Samoan indigenous entrepreneurship operates to ensure the independence of all extended families, including their capacity to be innovative. This appears to be possible because of the customary land tenure system that does not allow alienation of natural capital. Such a conclusion contradicts the commonly expressed view that economic development requires the creation of tradable property rights.Research limitations/implicationsOnly two Samoan villages were researched in depth. They are both traditional and from the same district. Even though this enables high‐quality data to be obtained about indigenous economic systems in Samoan village, it did into provide data about what may be more generally occurring among Samoan villages. Notwithstanding this, data were gained about what are the deep cultural pressures and challenges as Samoan indigenous economic systems face neo‐colonial globalisation.Practical implicationsIn contradiction to what is commonly argued in development economics literature, the research has found that the instituting of tradable property rights is likely to degrade economic development. The reason is because the IK constituting the Samoan indigenous economic systems implicates inalienable property rights for extended families and villages. Even though access to development capital through the opportunity to mortgage property may bring initial increase in economic development, community values to ensure equity and lack of poverty are likely to be compromised. The research concludes that the best option for the sustainable development of Samoan rural villages is to maintain customary land tenure, but to ensure there remains an ongoing emphasis on education, comprising of both IK and all knowledge pertaining to the new global economy and the opportunities it provides.Originality/valueAll aspects of the research are original. All data were collected by the author, and all grounded theoretical development was carried out by the author.

Editorial: Tradable White Certificates—a promising but tricky policy instrument

In the wake of a steadily expanding climate policy portfolio tradable white certificates (TWCs) are an energy-efficiency policy instrument, which is receiving increasing attention from policy makers worldwide. Many policy makers regard them as an effective instrument to improve security of supply, to minimize negative environmental impacts of energy conversion and to maximize economic efficiency of climate policies. Tradable white certificates have their roots in several preceding instrumental designs. Firstly, there is a heritage of integrated resource planning (IRP), demand side management (DSM), energy-saving obligation schemes for energy utilities. IRP started already in the 1970s and was enlarged to DSM and utility obligation programs in the 1980s (e.g. Hirst 1992; Schweitzer et al. 1991; Waide and Buchner, in this volume). The second line of heritage for TWCs comes from the development of the tradable property rights. Even though the idea has been around already for more than 40 years (Coase 1960), the implementation started only to pick up in the late seventies (‘bubble-concept’, Atkinson and Tietenberg 1991) and, more seriously, with the introduction of a capand-trade system for SO2 in the USA in the eighties. Since then, a strong trend favouring market-based instruments was prominent in many OECD countries. More specifically, the existing TWC systems have many features in common with greenhouse gas emission trade systems (notably EU ETS) and with green certificate systems, such as RECs (Gillenwater 2008a, b).

Land markets in late imperial and republican China

ABSTRACTChina has had very active markets for both the sale and the rental of land since Song times (960–1279), if not longer. By the sixteenth century, most of the institutional arrangements that would characterize these markets until 1949 were in place. These institutions differed sharply from those of emerging land markets in early modern Western Europe: in particular, government played a lesser role in adjudicating disputes over land contracts, and customary arrangements included features that (a) gave some sellers of land claims on purchasers that could last for many years and (b) gave some tenants, especially in South and East China, very strong usufruct rights, which themselves became a form of tradable property. However, despite these and other differences from Western models, Chinese land markets were quite efficient, and provided the incentives needed for a very productive agriculture; secure tenants, for instance, responded to their strong position by behaving like owners and investing heavily in improving the land.

Taxing Alternatives: Poverty Alleviation and the South African Taxi/Minibus Industry

The taxi/minibus industry in South Africa serves approximately 65% of the South Africans using public transportation and has been a wellspring of black entrepreneurial activity. Yet, this industry suffers from a legacy of illegality - thanks to apartheid-era laws that restricted economic opportunities for black South Africans. It also suffers from continuing problems of violence and from safety concerns. In order to address these problems, the South African government created the Taxi Recapitalization Programme (TRP). The TRP requires taxi/minibus operators to trade in 16-seat minibuses and purchase larger, new vehicles. However, this policy will not address the underlying problems that continue to provoke taxi violence. In order for policies that address taxi violence to be as effective as possible, they must focus on official corruption and establishing mechanisms that determine the access to taxi routes and ranks. This can be achieved by creating secure, defendable, and tradable property rights over routes and ranks. Unless these policies are implemented, violence is likely to continue.

Bankruptcy Risk and the Performance of Tradable Permit Markets

We study the impact of bankruptcy risk on markets for tradable environmental and natural resource permits. We find that firms that risk bankruptcy demand more permits than if they were financially secure. Consequently, bankruptcy risk in a competitive market for tradable property rights causes an inefficient distribution of individual choices among regulated firms. Moreover, the equilibrium distribution of permits is not independent of the initial distribution of permits. In fact, the inefficiency that is associated with bankruptcy risk is mitigated if financially insecure firms are given a larger share of the initial allocation of permits.

Human Rights vs Emissions Rights: Climate Justice and the Equitable Distribution of Ecological Space

In debates about principles for differentiating responsibilities for reducing carbon emissions, attention is invariably drawn to claims, staked in the language of rights, that limit responsibilities. This article charts the constraints on the legitimate use of normative arguments framed in terms of rights. It first distinguishes carbon emissions rights as tradable property rights from more fundamental norms of justice as represented by human rights. It then clarifies that the distribution of emissions rights within a state does not raise fundamental questions of justice, but that between states such questions do arise. The problem then is how to theorise those questions. Some argue, with the situation of the worst off particularly in mind, that there should be a human right to equal emissions per capita, or to sufficient emissions for subsistence. Yet I deny that there is any human right to emissions. This would be too inconsistent with a human right to a healthy environment. What the worst off have a right to is secure access to the means to a decent life. Emissions are not inherently necessary to fulfil that right. Moreover, a just distribution of emissions rights cannot be determined in isolation from the distribution of resources more generally. For if rights of subsistence and responsibilities for emissions reductions are to be comprehended within a single framework of justice, this must encompass a more comprehensive view of how the command of all natural resources and environmental goods is relevant to economic and welfare goods. My constructive proposal is that this more comprehensive view should be developed in terms of the idea of 'ecological space'. An equitable distribution of rights to ecological space would ensure an equitable distribution of subsistence goods without sanctioning any excess use of environmental services, including the planet's capacity for absorbing carbon. A just allocation of responsibilities for emissions reductions must take due account of the human rights of the worst off, but this does not entail granting them emissions rights; rather it entails a recognition of the wider ranging redistributive responsibilities of those who have already benefited from an excess of emissions for which the poor have not been responsible.

Evaluating tradable property rights for natural resources: The role of strategic entry and exit

This paper presents an econometric approach to the evaluation of environmental regulation using tradable property rights. Existing empirical research on this issue, which compares overall industry efficiency before and after the introduction of new regulations, conflates two distinct phenomena: efficiency changes due to exit of excess capital and changes in the efficiency of individual firms. Because the regulatory process induces firms of different types to enter and exit the industry at different rates, the true efficiency and equity effects of tradable property rights cannot be assessed without correcting for these changes in sample composition. This paper examines the impact of regulatory change in the Mid-Atlantic surf clam fishery, using an econometric model that separates its effects on industry structure and vessel efficiency. The analysis finds that, contrary to widely held belief, tradable property rights did not disproportionately benefit either large fishing firms or highly integrated firms.

Evaluating Tradable Property Rights for Natural Resources: The Role of Strategic Entry and Exit

This paper presents an econometric approach to the evaluation of environmental regulation using tradable property rights. Existing empirical research on this issue, which compares overall industry efficiency before and after the introduction of new regulations, conflates two distinct phenomena: efficiency changes due to exit of excess capital, and changes in the efficiency of individual firms. Because the regulatory process induces firms of different types to enter and exit the industry at different rates, the true efficiency and equity effects of tradable property rights cannot be assessed without correcting for these changes in sample composition. This paper examines the impact of regulatory change in the Mid-Atlantic surf clam fishery, using an econometric model that separates its effects on industry structure and vessel efficiency. The analysis finds that, contrary to widely held belief, tradable property rights did not disproportionately benefit either large fishing firms or highly integrated firms.

Unitization and securitization of property investment: Implications for future valuation

Abstract Property investments are now mobile, being tradable securities or listed units (vehicles) comparable to stocks/ shares in the financial market. Hence, the need for valuation to be a counterpart to investment and security analysis. But, current valuation practice in the country has not placed property in a wider economy and the analytical techniques of other markets. The paper therefore demonstrates how current valuation techniques in the property market can meet the needs of investors for listed or tradeable property assets in the country. It also examines the implications on the valuation profession as well as the attendant consequences that are likely to be associated with the quest for change. The study utilizes data from both the Nigerian property and capital markets using simple descriptive, non‐statistical, techniques.

UNITIZATION AND SECURITIZATION OF PROPERTY INVESTMENT: IMPLICATIONS FOR FUTURE VALUATION

Property investments are now mobile, being tradable securities or listed units (vehicles) comparable to stocks/ shares in the financial market. Hence, the need for valuation to be a counterpart to investment and security analysis. But, current valuation practice in the country has not placed property in a wider economy and the analytical techniques of other markets. The paper therefore demonstrates how current valuation techniques in the property market can meet the needs of investors for listed or tradeable property assets in the country. It also examines the implications on the valuation profession as well as the attendant consequences that are likely to be associated with the quest for change. The study utilizes data from both the Nigerian property and capital markets using simple descriptive, non‐statistical, techniques.

Individual Transferable Quota Markets under Illegal Fishing

The use of individual transferable quotas in fisheries has been considered an opportunity to achieve a given total allowable catch with a maximum social benefit. One of the assumptions used in obtaining that result is that the system is in perfect compliance. The presence of violations and the need for enforcement of tradable property rights systems in fisheries has not received much attention in the literature. The incidents of non-compliance, however, may affect the performance of transferable property rights-based fisheries in unexplored ways. In this paper, we adapt previous literature on enforcing emissions trading programs to analyze a positive model of fisherman behavior that operates under a perfectly competitive individual transferable quota system, while recognizing the opportunities for violations of quota holdings, given incomplete enforcement. Considering a poorly enforced, individual transferable quota system we are able to obtain a number of implications for the current and future equilibrium of the quota market, the time paths of the fishery, and the proper design of a policy rule on total allowable catch (TAC).

The equity debate: distributional impacts of individual transferable quotas

The twin goals of economic efficiency and social equity often seem at odds, particularly in the debate over two marine policy approaches: firm-level regulation of inputs and outputs (“command and control”) and individual transferable quotas. This paper examines the debate over social equity in a US fishery that transitioned from command and control to individual transferable quotas—the mid-Atlantic clam fishery. The analysis draws on 17 years of data on fishing trips, vessel ownership, tradable property rights ownership, and output market shares. The results show that no segment of the industry was disproportionately adversely affected by the regulatory change; however, they also demonstrate the emergence of a new sector in the industry, which is predominantly made up of former small-scale harvesters.

Defining Tradable Water Entitlements and Allocations: A Robust System

Robust systems are characterized by a capacity to recover gracefully from the whole range of exceptional inputs and situations in a given environment. They have a connotation of elegance.This paper will highlight the importance of separating the different elements of any tradable property entitlement and allocation system into its component parts. The result is a constellation of institutional arrangements that can be expected to last, to withstand the test of time. Often, considerable reform is required to put in place robust systems. Using examples from Australia, this paper will highlight the importance of sequencing implementation of the reforms necessary to put robust systems in place. Robustness is achieved by using three instruments rather than one instrument to allocate water and control use, and coupling these three instruments with three separate planning instruments.

MUST GOVERNMENT GO FISHING?

The depletion of fish stocks around the UK presents serious problems for the UK, and in particular the Scottish, fishing industry. This is a classic ‘tragedy of the commons’, repeatedly occurring in fisheries, where open access to a limited resource leads to serious depletion and may ultimately wipe out that resource. A recent report by the Royal Society of Edinburgh endorses the scientific basis for drastic cuts in fishing quotas under the Common Fisheries Policy to conserve stocks, and the necessary regulation and restriction of fishing effort in the UK. But it further recommends government‐led initiatives to reorganise and finance the industry. Fishing in the UK is a successful entrepreneurial business and no such intervention by government is required. Government must concentrate on devising methods of regulation which, through the extension of tradable property rights in fishing, would encourage the best economic return from this important public resource.