Gianluigi De Mare

Government Tools for Urban Regeneration: The Cities Plan in Italy. A Critical Analysis of the Results and the Proposed Alternative

The study discusses the application of a national law in the period 2012/13 aimed at stimulating the aggregation of entities – public and private – involved in the regeneration of deprived urban areas. With limited funding, little more than €300 million, the Italian State managed to entice local governments into the coagulation of initiatives to improve the quality of urban life. More than 400 proposals were received and evaluated by the institutional Control Room, resulting in a classification that awarded 28 municipalities. This paper analyses the results and proposes a multi-criteria methodology and alternative rationale to prioritise the projects, highlighting the consistencies and weaknesses of the management approach.

Building Investments for the Revitalization of the Territory: A Multisectoral Model of Economic Analysis

Following the crisis generated by the financialization of private real-estate, construction prices have gradually decreased depriving the housing market of the necessary growth stimuli. Many countries have set up measures to revive this highly strategic area for the national economy. With reference to the Campania Region Law n. 19 dated 28 December 2009, known Housing Plan, this work has two objectives: to recognize the fundamental estimation problems that need to be solved in the implementation of the Campania Housing Plan; in addition, predict the effects of the regulations on the regional economy, both in overall terms as well as for each production sector, with particular attention being given to the construction industry. Regarding the first objective, the contents of the law are analysed on the basis of the principles that govern the appraisal. The consequences of the Campania Housing Plan on the economic system are then evaluated using input-output matrices, which are able to capture the structural relationships that exist among the various productive sectors. The numerical calculations require a preliminary investigation aimed at collecting a list of interventions approved by local governments in accordance to the Housing Plan. The cost of the works, as proposed in the applications submitted to the local administrations, is the input data for the implementation of the Social Accounting Matrix 2010 of the Campania Region.

The rational quantification of social housing: an operative research model

This work has addressed the issue of the urban redevelopment of brownfield sites. It has developed an evaluation model for the quantification of the social housing component that the private investor must make in favor of the public administration. The protocol is based on finding a balance between the interests of the parties involved in urban redevelopment. The algorithm is constructed by borrowing techniques from Operations Research Linear Programming. The objective function is to maximize the social housing quota. The constraints formalize the utility functions of the two contracting parties (public and private). The result is a simple to use mathematical process, which can be implemented in any local context, in order to make choices consistent with the potential of the local housing markets. The algorithm developed is applied to a case located in a municipality of the Agro-Nocerino-Sarnese (SA). The output returned enhances the rationality of the model, capable of contributing to the feasibility of the redevelopment of disused areas.

The Economic Evaluation of Investments in the Energy Sector: A Model for the Optimization of the Scenario Analyses

The well-known evaluation indices do not allow to take into account the interaction between current investment alternatives and future decisions. The real options theory provides answers to the limits that the evaluators discovered in the traditional techniques of capital budgeting and allows to give a value to managerial flexibility, i.e. the ability of management to review its decisions on the basis of changes in the economic context. Implementing the traditional cash-flow analysis with the tool of real options, the study defines a logical-operational model capable of verifying the financial viability of investments in the energy sector. The model is applied to the economic study of a project to produce energy from renewable sources, specifically the construction of a new wind farm. The different operational phases of the model used for the optimization of the scenario analyses, return the value of the positive potential that can result from management flexibility and innovation.

A Model for the Economic Evaluation of Energetic Requalification Projects in Buildings. A Real Case Application

The study is part of the current debate on the selection of cost-effective interventions to ensure the energy efficiency of buildings. It is generally considered a major issue for the conscious exploitation of environmental resources and, in particular, the economic sustainability of the management processes of buildings.

Dynamic Analysis of the Property Market in the City of Avellino (Italy)

The dynamics of the housing market have been the subject of study and modelling for several decades (including: Muth, 1963; Ozanne, Thibodeau, 1983; Stiglitz, 1993; Green, Malpezzi and Mayo, 2005). The contingent relationships between the property market and micro and macroeconomic situations are particularly interesting. Studies were carried out by Di Pasquale and Wheaton (1996), with reference to the office property market and the correlation with the construction industry. The model has been adopted in this study, but applied to the residential property market in a medium size city located in southern Italy. The aim includes both the reading of the historical past ten years, with a dynamic approach to the problem, as well as a predictive application of the model for the near future (2013-2015).

Efficiency Analysis for Sustainable Mobility — The Design of a Mechanical Vector in Amalfi Coast (Italy)

Efficient urban infrastructure interventions make it possible to pursue goals of sustainable mobility, that nowadays are extremely important in light of the need to reduce the negative impact produced by human activities on the environment. In addition and to a no lesser extent, the implementation of the investment requires the monetary resources to realise the works. In relation to this aspect, the scarcity of public funds in the current economic contingency makes the involvement of private capital and entrepreneurial skills indispensable in the execution and performance of these works.This work shows how the use of a suitable economic evaluation model is indispensable in order to encourage public-private partnerships aimed at the execution and correct management of an intervention in the field of sustainable mobility. The proposed evaluation model implements the instrument of inter-sectorial matrices, which allow to determine the impacts (output) generated by a change in aggregate demand (input, such as the investment costs in an industry) on the economy of the territory where the matrix is associated.The analysis and calculations are carried out in relation to the project for the construction of a mechanical vector in the town of Vietri sul Mare in the province of Salerno (Italy), which is useful in ensuring the decongestion of road traffic and the consequent reduction in travel times along the Amalfi Coast.

Using Genetic Algorithms in the Housing Market Analysis

This paper tests the use of Genetic Algorithms to interpret the relationship between real estate prices and the geographic locations of the properties. Issues of choosing algorithm parameters are discussed on the basis of applying data collected in the city of Potenza to 190 houses. The aim of the study is to show the potential and the limits of genetic algorithms in this field and how they can be effectively used in the analysis of the housing market.

The Sustainable Limit of the Real Estate Tax: An Urban-Scale Estimation Model

The equalization criterion is important in relation to the real estate tax. The amount that the taxpayer must pay to the government should be commensurate with the current market value of the asset. In several European Countries, including Italy, the real estate tax is based on cadastral incomes, which often do not express the assets real market value. The evaluation model proposed in this study, developed following the evaluation logic of typical values procedure, aims to get to tax equalization by revising tax rates according to market information properly collected from datasets provided by private or public agencies. The model is set-up following these stages: analysis of the price formation mechanisms for urban properties and choice of evaluation process; selection of real estate features needed to achieve the tax equalization aims; data collection; definition of value function; calculus of the Municipal Property Tax; model calibration. The validity of the model is demonstrated by a case study application carried out on a wide urban area in which are situated about 500 real estate units.

An Expeditious Model for Equalization of Municipal Tax on Real Estate - An Italian Case

The current difficulties of the Italian public budget are likely to lead it to exceed the European limit that sets a deficit not superior to 3% of the GDP. It seems that the council property tax regulations, adopted by Legislative Decree 102/2013 last August, will not be transformed into law. The regulations included the abolition of the council tax (IMU), which currently affects buildings in relation to their land value and not their market value. This study developed in equal parts by the two authors is based on the difference, abnormal in the Italian case, between these two values as well as the social and economic inequalities it generates. It proposes an expeditious model capable of reducing the inequality inherent in the mechanism of tax, ensuring the differentiation of the cadastral value at least with respect to the location of the housing, which - together with the construction characteristics contributes to the diversification of the market value of the property.