当前课程知识点:Socially-Responsible Real Estate Development: Learning to Use Impact Assessment Tools Effectively > Module 4: Case Study: Forest City > Readings > Facility Siting and Public Opposition
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Many of the costs of large-scale projects fall disproportionately on people that live and work nearby, who may potentially have to relocate, live with higher risks, or see the value of their property diminish. By contrast, the benefits of such projects are normally spread widely across a region. This means that local opposition to a project is easier to organize and often more forceful than the more diffuse groups that might advocate for it. This uneven dynamic can sometimes derail a project that might offer substantial benefits for society overall.
What strategy should a developer adopt to attempt to deal with this type of imbalance? In this reading, an excerpt from Facility Siting and Public Opposition (pp. 67-76 and 85-91), authors Michael O'Hare, Lawrence Bacow, and Debra Sanderson argue that compensation agreements should play a central role, and in the right circumstances, can create an outcome somewhere between ‘build’ and ‘no build’ that actually increases the local opposition’s welfare. Note that they are not talking about compensation only in monetary terms.
O’Hare et al. argue that compensation is best determined through negotiations among opposing parties. They outline a number of conditions that must be met for a useful negotiation to occur. These are: 1) each party must have something to trade; 2) there must be some potential negotiation outcome that leaves each party better off than not trading at all; 3) each party must trust that the other parties will follow through on their commitments; 4) each party must trust that all the above conditions are true. In practice these conditions can be very difficult to achieve. According to the authors, this explains why more people do not attempt to negotiate compensation agreements, despite their potential as a way of making all parties better off.
Socially responsible developers should use EIA and SIA to determine the costs and benefits to local stakeholders if a project proceeds, and use these findings to negotiation agreements. Simply imposing arbitrary payouts on certain stakeholders, as Forest City initially did (to certain fishermen associations), is insufficient.
Reflection questions:
1. The authors claim that, in instances where the costs of a compensation agreement outweigh the benefits to the developer of a project, this should flag the project as undesirable and result in its cancellation. Do you think this is realistic, or might developers take other routes to avoid excessive compensation costs?
2. In the Forest City case, what things other than cash payments might a developer and local opponents discuss in a compensation negotiation?
3. How do you think contending groups can build the level of trust needed to ensure that parties honor any agreements they reach?
Facility Siting and Public Opposition
-Welcome
--Welcome
-Course Welcome
--Welcome
-Entrance Survey
-Entrance Survey
-Learning Objectives
-Course Schedule
-Meet Your Course Instructors
-Grading and Completion Criteria
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-Introduction
-Lectures
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-Readings
--Social Impact Assessment: The State of the Art
--Social Impact Assessment and Public Participation in China
-Developer Interview
--Module 1
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-Questions
-Assignment
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--Peer Assessment
-Debrief
--Discuss
-Introduction
-Lectures
-Readings
--Methods of Environmental Impact Assessment
--Public Participation and Environmental Dispute Resolution
--Environmental Impact Assessment for Developing Countries in Asia
--Importance of Nonobjective Judgements
--Example Environmental Impact Statement
-Developer Interview
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--Module 2
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-Questions
-Assignment
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--Peer Assessment
-Debrief
--Discuss
-Introduction
--Text
-Lectures
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-Readings
--Introduction to Social Impact Assessment
--Effectiveness in Social Impact Assessment
--Example Social Impact Statement
-Developer Interview
--Video
--Text
-Questions
-Assignment
-Debrief
--Discuss
-Introduction
--Text
-Forest City Case Study
--Part 1
--Part 2
--Part 3
--Additional Forest City Information
-Lectures
-Readings
--Dealing with An Angry Public
--Facility Siting and Public Opposition
-Developer Interview
--Module 4
--Text
-Questions
-Assignment
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--SCENARIO
-Debrief
--Discuss
-Introduction
-Lectures
-Readings
--Why Would Corporations Behave in Socially Responsible Ways?
--Social Impact Assessments of Large Dams Throughout the World
--Environmental Sustainability Principles for the Real Estate Industry
-Developer Interview
--Module 5
-Questions
-Assignment
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--SCENARIO
-Debrief
-Further Resources
-Thank You
--Thank you for taking the course
-Acknowledgements