09 Jul a local public park in Parramatta
There is a local public park in Parramatta on which a developer wishes to build a giant block of flats (at an economic profit). The park land is owned by Parramatta City Council. The Council is contemplating whether to sell the park to the developer. If the Council sold the land to the developer, it could use the revenue to purchase new street-lights and to fix footpaths in the surrounding area. Residents who live in houses around the park complain. They say that they enjoy the park as it is. Furthermore, they say that the block of flats would be too big and ugly and would result in traffic congestion in the nearby streets, which would depress the market value of their own houses.
Is there a Coase Theorem solution to this problem?
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