Abstract

This research paper introduces a comprehensive framework to mitigate negative development externalities through the implementation of Real Estate and Transferable Development Rights (TDR) Exchanges. Negative externalities, such as environmental degradation and inefficient land use, pose significant challenges to sustainable urban development. The study presents a novel theoretical model that leverages economic principles and regulatory mechanisms to address these issues effectively. The research begins with a critical examination of prevailing market inefficiencies and the challenges associated with liquidity constraints in the real estate sector. Central to the proposed solution is the development of sophisticated bidding and pricing algorithms. These algorithms are grounded in economic theory and are designed to optimize TDR transactions by ensuring accurate market valuations and minimizing distortions. The methodology is rooted in economic model building and theoretical framework development. The study constructs detailed economic models that integrate advanced mathematical and statistical approaches to simulate the dynamics of TDR and Real Estate Exchanges. This theoretical approach allows for a rigorous analysis of how these exchanges can improve market efficiency and promote sustainable urban development. The findings suggest that the proposed exchanges can significantly enhance market transparency and facilitate equitable transactions, thereby contributing to more efficient land use and environmental conservation. The paper concludes with policy recommendations aimed at enhancing the regulatory environment to support the successful implementation of TDR and Real Estate Exchanges. By providing a robust theoretical foundation and practical guidelines, this research contributes to the ongoing discourse on urban planning and development. It underscores the importance of innovative economic models and regulatory responses in achieving sustainable urbanization and offers a roadmap for future research and policy development.

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