Sandy G. Bond and Paul J. Kennedy
Increasing litigation involving land contamination and an escalation in the number of incidents where property owners have suffered financial losses from these cases has resulted…
Abstract
Increasing litigation involving land contamination and an escalation in the number of incidents where property owners have suffered financial losses from these cases has resulted in negative impacts on property values and greater risks associated with investments in contaminated property. To date, there has been little systematic research on the valuation methodology that accounts for these risks. To help address this, two similar surveys were undertaken within New Zealand (NZ) and the United Kingdom (UK), the results of which are summarised here. The survey instruments were designed to determine what the respondents are currently doing when providing advice or producing valuations to account for the financial risks associated with investing in contaminated properties. It is hoped that the survey results will aid the process of developing “best practice” methodologies for use by valuers.
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Shishir Gupta, Soumik Das and Rachaita Dutta
The purpose of the present study is to investigate the dispersion and damping behaviors of Love-type waves propagating in an irregular fluid-saturated fissured porous stratum…
Abstract
Purpose
The purpose of the present study is to investigate the dispersion and damping behaviors of Love-type waves propagating in an irregular fluid-saturated fissured porous stratum coated by a sandy layer.
Design/methodology/approach
Two cases are analyzed in this study. In case-I, the irregular fissured porous stratum is covered by a dry sandy layer, whereas in case-II, the sandy layer is considered to be viscous in nature. The method of separation of variables is incorporated in this study to acquire the displacement components of the considered media.
Findings
With the help of the suitable boundary conditions, the complex frequency relation is established in each case leading to two distinct equations. The real and imaginary parts of the complex frequency relation define the dispersion and attenuation properties of Love-type waves, respectively. Using the MATHEMATICA software, several graphical implementations are executed to illustrate the influence of the sandiness parameter, total porosity, volume fraction of fissures, fluctuation parameter, flatness parameters and ratio of widths of layers on the phase velocity and attenuation coefficient. Furthermore, comparison between the two cases is clearly framed through the variation of aforementioned parameters. Some particular cases in the presence and absence of irregular interfaces are also analyzed.
Originality/value
To the best of the authors' knowledge, although many articles regarding the surface wave propagation in different crustal layers have been published, the propagation of Love-type waves in a sandwiched fissured porous stratum with irregular boundaries is still undiscovered. Results accomplished in this analytical study can be employed in different practical areas, such as earthquake engineering, material science, carbon sequestration and seismology.
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Spencer T. Brien and Leslie L. Hine
This study investigates how outsourcing multiple public functions in a single contract increases the complexity of the services rendered under the agreement. We hypothesize that…
Abstract
This study investigates how outsourcing multiple public functions in a single contract increases the complexity of the services rendered under the agreement. We hypothesize that product complexity arises in these bundled service agreements due to several factors including diseconomies of scope, the 'lock-in' problem, and communications problems between the contractor, the government and the public. We investigate these questions using a textual analysis research methodology to examine the initial contract documents that formalized an agreement between the City of Sandy Springs Georgia and the firm CH2M Hill. The results of this qualitative study identified several ways that different combinations of functions increased product complexity. It also revealed ways the contracts were designed to mitigate the risks of outsourcing multiple functions in a single contract.
Canterbury, New Zealand, experienced two significant earthquakes in 2010 and 2011 with a devastating impact on both houses and land. Negative media attention to the potential…
Abstract
Purpose
Canterbury, New Zealand, experienced two significant earthquakes in 2010 and 2011 with a devastating impact on both houses and land. Negative media attention to the potential financial risks of living near or on the new Technical Category 3 (TC3) land or on land in a flood zone has fuelled the perception of uncertainty over the negative property price impacts. This research aims to determine if residents’ perceptions of the risks associated with various types of land zones (e.g. TC1, TC2 and TC3) are reflected in property prices.
Design/methodology/approach
This research analyses sale price patterns and the relationship between sale prices and house characteristics before and after both earthquakes. A three-step approach was taken by applying: an average trend analysis, Geographic Information Systems’ (GIS) hotspot analysis to identify possible spatial differentiations between the before and after-effects of the earthquakes and hedonic modelling to quantify the effect of house characteristics on sale price while controlling for and comparing three land zones (TC1 to TC3).
Findings
The data suggest that average sale prices increased after both quakes in TC1 and TC2 in contrast to TC3 zones, while close to 8,000 structures were demolished in red zones from 2010-2013 (supply was reduced). The econometric modelling suggests that higher sale prices are achieved by: newer houses across all land zones and more recent sale agreements only in TC1 and TC2 zones. Other observations include the effect of certain exterior façade materials on sale prices on the overall data set and in the individual TC1 and TC3 zones. In conclusion, the results suggest that although caution might exist for the TC3 zone, the quality of the house can override the stigma attached to the TC3 zones.
Research limitations/implications
A confounding factor in the research was that approximately 7,800 homes were rezoned red and/or demolished between 2010 and 2013 changing the supply and demand balance. Further, banks and other lenders updated their requirements for new lending on properties in the Canterbury region, requiring a number of reports from professionals such as structural engineers, geotechnical engineers and valuers before any new lending would be approved. Additionally, immediately after the September and February earthquakes, there was a 21-day stand-down period for earthquake-cover in Canterbury and without adequate insurance cover banks would not advance mortgage money, causing a short-term slowdown in the residential property market.
Practical/implications
The outcomes of this research will be of interest to government agencies tasked with assessing compensation for affected property owners. For example, the Earthquake Commission (EQC) developed a Diminution of Value Methodology for Increased Flooding Vulnerability that formed the basis of a High Court declaratory judgment decision in December 2014 that cleared the way for the EQC to start settling properties with increased flooding vulnerability. The EQC methodology was informed by the results of similar studies to this one, from around the world. Homeowners and rating valuers will also be interested in the results to understand how house prices have been affected by market perceptions towards earthquake damage, particularly in the worst-affected areas.
Originality/value
This study fills a research void regarding the price impacts of residents’ perceptions of the risks associated with various types of land zones that reflect the expected future liquefaction performance of the land.
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Yang Zhao, Jin-Ping Lee and Min-Teh Yu
Catastrophe (CAT) events associated with natural catastrophes and man-made disasters cause profound impacts on the insurance industry. This research thus reviews the impact of CAT…
Abstract
Purpose
Catastrophe (CAT) events associated with natural catastrophes and man-made disasters cause profound impacts on the insurance industry. This research thus reviews the impact of CAT risk on the insurance industry and how traditional reinsurance and securitized risk-transfer instruments are used for managing CAT risk.
Design/methodology/approach
This research reviews the impact of CAT risk on the insurance industry and how traditional reinsurance and securitized risk-transfer instruments are used for managing CAT risk. Apart from many negative influences, CAT events can increase the net revenue of the insurance industry around CAT events and improve insurance demand over the post-CAT periods. The underwriting cycle of reinsurance causes inefficiencies in transferring CAT risks. Securitized risk-transfer instruments resolve some inefficiencies of the reinsurance market, but are subject to moral hazard, basis risk, credit risk, regulatory uncertainty, etc. The authors introduce some popular securitized solutions and use Merton's structural framework to demonstrate how to value these CAT-linked securities. The hybrid solutions by combining reinsurance with securitized CAT instruments are expected to offer promising applications for CAT risk management.
Findings
The authors introduce some popular securitized solutions and use Merton's structural framework to demonstrate how to value these CAT-linked securities. The hybrid solutions by combining reinsurance with securitized CAT instruments are expected to offer promising applications for CAT risk management.
Originality/value
This research reviews a broad array of impacts of CAT risks on the (re)insurance industry. CAT events challenge (re)insurance capacity and influence insurers' supply decisions and reconstruction costs in the aftermath of catastrophes. While losses from natural catastrophes are the primary threat to property–casualty insurers, the mortality risk posed by influenza pandemics is a leading CAT risk for life insurers. At the same time, natural catastrophes and man-made disasters cause distinct impacts on (re)insures. Man-made disasters can increase the correlation between insurance stocks and the overall market, and natural catastrophes reduce the above correlation. It should be noted that huge CAT losses can also improve (re)insurance demand during the postevent period and thus bring long-term effects to the (re)insurance industry.
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Jamiu Adetayo Dauda, Suraj A. Rahmon, Ibrahim A. Tijani, Fouad Mohammad and Wakeel O. Okegbenro
The purpose of this study is to find the optimum design of Reinforced Concrete (RC) pile foundation to enable efficient use of structural concrete with greater consequences for…
Abstract
Purpose
The purpose of this study is to find the optimum design of Reinforced Concrete (RC) pile foundation to enable efficient use of structural concrete with greater consequences for global environment and economy.
Design/methodology/approach
A non-linear optimisation technique based on the Generalised Reduced Gradient (GRG) algorithm was implemented to find the minimum cost of RC pile foundation in frictional soil. This was achieved by obtaining the optimum pile satisfying the serviceability and ultimate limit state requirements of BS 8004 and EC 7. The formulated structural optimisation procedure was applied to a case study project to assess the efficiency of the proposed design formulation.
Findings
The results prove that the GRG method in Excel solver is an active, fast, accurate and efficient computer programme to obtain optimum pile design. The application of the optimisation for the case study project shows up to 26% cost reduction compared to the conventional design.
Research limitations/implications
The design and formulation of design constraints will be limited to provisions of BS 8004 and EC 7.
Practical implications
Since the minimum quantity of concrete was attained through optimisation, then minimum cement will be used and thus result in minimum CO2 emission. Therefore, the optimum design of concrete structures is a vital solution to limit the damage to the Earth's climate and the physical environment resulting from high carbon emissions.
Originality/value
The current study considers the incorporation of different soil ground parameters in the optimisation process rather than assuming any pile capacity value for the optimisation process.
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Kristijan Mirkovski, Robert M. Davison and Maris G. Martinsons
Drawing on transaction cost economics (TCE) and social exchange theory (SET), the purpose of this paper is to explain why and how external environment, governance structures and…
Abstract
Purpose
Drawing on transaction cost economics (TCE) and social exchange theory (SET), the purpose of this paper is to explain why and how external environment, governance structures and interpersonal relationships influence information and communication technology (ICT)-enabled information sharing in supply chains (SCs) of small- and medium-sized enterprises (SMEs) from developing economies.
Design/methodology/approach
The authors adopt a theory-building approach using a multiple case study design, including four SMEs operating in SCs from two developing economies (i.e. Republic of North Macedonia and People’s Republic of China), in which the authors conduct both within-case and cross-case analyses.
Findings
Social bonds (known as vrski in Macedonian and guanxi in Chinese) were found to govern buyer–supplier exchanges by supporting the establishment of personal trust and the reduction of distrust. These social bonds compensate for the institutional deficiencies in developing economies and thus encourage ICT-enabled information sharing by SMEs in their SCs.
Research limitations/implications
By applying the theoretical perspectives of TCE and SET to the cross-case analysis, the authors develop nine propositions to explain ICT-enabled information sharing and its interdependencies with external environment, governance structures and interpersonal relationships in developing economies. Further research is recommended to refine and test the generalizability of the theoretical model.
Practical implications
Firms have to develop and nurture social bonds with their suppliers from developing economies to reduce risks related to the environmental uncertainty and institutional voids. This can increase trust and decrease distrust associated with ICT-enabled information sharing.
Originality/value
The study examines why and how external environment (environmental uncertainty and institutional environment), social bonds (vrski and guanxi) and interpersonal mechanisms (trust and distrust) influence ICT-enabled information sharing of SMEs operating in developing economies.
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Mohammad Reza Karami, Mohsen Keramati, Reza Maadi and Hossein Moradi Moghaddam
This study aims to examine the reuse of plastic and fly ash (FA) to improve the soil and achieve sustainable development goals.
Abstract
Purpose
This study aims to examine the reuse of plastic and fly ash (FA) to improve the soil and achieve sustainable development goals.
Design/methodology/approach
Sand from the Anzali port was reinforced with Geopet (GP) and stabilized with FA plus 3% sodium hydroxide. The GP was placed in FA-stabilized soil and the California bearing ratio (CBR), and unconfined compressive strength (UCS) tests were performed on samples at the optimum moisture content.
Findings
The results showed that the improvement in the optimum CBR was 174.9%. The UCS increased 15.25% and 48.65% in soil reinforced with three layers of GP plus 15% FA over those containing 10% and 5% FA, respectively. Additionally, the current analysis used response surface methodology (RSM) to investigate the impact of FA percentage, GP layers and their interaction on CBR. The results highlight the efficacy of the used RSM model, as evidenced by the significantly low p-value (<0.0001).
Originality/value
This demonstrates the suitability and effectiveness of RSM for evaluating CBR in this scientific study.