ECONOMICS AND ENVIRONMENTAL VALUATION

The objectives of the Economics and environmental estimate are the personal and professional education of the student of Architecture basing on the awareness of theoretical issues, methodological structures and application tools that preside over aspects of value and valuation of real estate properties, plans and projects that have as their main reference the territory, the city, the architecture and the landscape and involving the main distributive economic variables. The course provides the essential coordinates of value theory, starting with a historical, analytical and critical approach to the achievements of both the mainstream and critical schools of economics. These are related to the evaluation method and procedures of private and public assets and projects as to qualitative-monetary, qualitative-physical and aesthetic-qualitative variables, with reference to mono and multicriteria analysis tools. Particular attention is generally devoted to the issue of capital goods according to the relationship between social system and environment; this relationship, in fact, is strongly affected by the transformation processes according to the prevailing values as the related valuation results in terms of financial feasibility, economic convenience, social equity and eco-systemic sustainability.

DD1 The course provides the essential coordinates of the theory of value, starting from a historical, analytical and critical approach to the theoretical elaborations referable to the main schools of economic thought.

DD2 These aspects are linked to the method and procedures for assessing private and public assets and projects and environmental damage, and the related question of the internalization of externalities, with reference to the related qualitative-monetary, qualitative-physical and aesthetic-qualitative variables, then to mono and multi-criteria analysis tools. Particular attention is paid to the economic-environmental dimension of capital goods in the light of the relationship between the system and the environment that the transformation processes modify in the directions of which the assessment emphasizes the degree of financial feasibility, economic convenience, social equity and eco-systemic sustainability.

DD3 Two application areas will allow the students to experiment the use of basic knowledge and methodological systems acquired, in particular: 1) in the field of real estate appraisal; 2) the critical analysis of urban environmental identities in the specific context of historical building fabrics.

DD4 The student will be able to communicate the results of the experimentation carried out through a report that exposes in a coherent way the logical, methodological and operational path.

DD5 The student will be provided with specific models of analysis, evaluation and calculation, of which he/she will demostrate the knowledge and ability of application in different and further contexts.

The course takes place in 80 hours of lectures including exercises and examples of the methodological and applicative tools that pertain to the theoretical aspects covered. The topics addressed relate to four areas of integrated and converging knowledge on the basis:

1. as first, of a set of basic notions intended to create the lexicon useful to understand the fundamentals and master the main economic categories, the first module focuses on the essential elements of history, analysis and criticism of the economic theories essentially aimed at the theory of value;

2. the second is devoted to the operational appraisal and its references to the more general aspects of the evaluation science;

3. the third addresses the theory of capital and the practice of private and public investment valuations;

4. the fourth is dedicated to the valuations of goods and processes whose complexity requires the convergence and integration of monetary and extra-monetary measures. An exercise allows students to acquire the evaluative sensitivity necessary to connect the concrete qualitative evaluations an abstract quantitative (monetary) measures.

The exercise aims at qualitative and quantitative-monetary evaluations of assets located in consolidated urban fabrics. Students can choose between real estate estimate and analysis of parts of the building fabric in a specified context. An ongoing test will allow students to establish an understanding of the topics covered in class, as well as the teacher to verify the adequacy of teaching with respect to the level of students' basic knowledge, and the evolution of these knowledge in the prospect of understanding the economic nature of the architectural-urban and territorial-environmental phenomenon, through the approach to value and evaluations.

The course is divided into four integrated modules addressed in parallel:
History analysis and criticism of economic theories with reference to the issues of the theory of wealth and value;
Mono and multi-dimensional evaluation method and procedures in real estate, urban, territorial and environmental fields;
Capital Theory and Economic and Financial Assessment of Investments with Actuarial Mathematics Elements
Practice exercise concerning real-estate appraisal and urban-architectural project management valuations

in detail:

1. Introduction: aims, methods, tools

1.1. Economics as the science of wealth and the science of value: main definitions; Micro and Macro-economics; Wealth and Value, Economy and Estimate;

1.2. Estimation: The value judgment; content and form: values ​​and evaluations; the question of the enhancing substance and the ways of its representation; economic objects and goods. Assessment postulates and codes of conduct; Estimation and evaluation; Economic aspects and estimation criteria; Estimation method and procedures: direct and indirect comparison; synthetic (mono and multi-parametric) and analytical procedure or by capitalization of income.

1.3. General aspects of the environmental issue: macro-systemic approach; the social system and the environment; social communication and generalized means of communication at a high symbolic level; internal communication and sub-systems training; codes, programs and values.

1.4. Economic activity:

1.4.1.Production of wealth: functions of classical, neoclassical and new economy production; economic goods and factors of production and distributive variables - labor, land, capital; production and productivity; efficiency, effectiveness, cost-effectiveness and fairness of the production process;

1.4.2 Exchange of wealth:

1.4.2.1. Circulation of economic goods: the market; market forms: perfect competition; supply and demand functions; quantity as a function of price; market equilibrium; the model of the cobweb; elasticity of supply and demand; elasticity of the various economic goods: commodity-goods and sign-goods in the environmental question; price as a function of quantity; examples of comparative statics; other forms of market: monopoly / psonio; oligopoly / psonio - game theory; monopolistic competition.

1.4.2.2. Circulation of money: definitions of money; economics of barter and credit; equation of exchanges and its interpretations; the value of money: liquidity; liquidity as a noun and as property of economic goods and money; inflation; definition and causes;

1.4.3.Use / consumption of wealth: needs and utilities; consumer desires and ethics; hedonism: individual axiology and collective ethics: person and community; utility function; total and marginal utility; utility and value; the usefulness and the enhancing substance; relations between being a commodity and being a sign of economic goods;

1.4.4. Accumulation of wealth: definition and classification of investments; productive and speculative investments; upward and downward speculation; the stock exchange and financial markets; real estate finance; environmental finance; capital, capitalism, the capitalists. Building production and real estate speculation;

1.5. Socio-economic values ​​and models: Definitions and classifications of economic assets, investments, values: types of value and economic plans.

1.6. From economic theory to estimative practice: economic-estimative epistemology: substance of value and forms of evaluation.

2. The question of value in economic analysis: theories of value

2.1. Episteme of resemblance and representation: Mercantilists, Malthus and Keynes; wealth-money theory.

2.2. Episteme of production and labor: Physiocracy and land-value, intersectoral analysis and Leontief's input-output model, classical-Marxian economics and theory of labor value; theory of capital, Fisher and Hicks, theory of capital and the temporal form of investments, neoclassical economics and theory of utility / marginal productivity value; problems: of the consumer, of the producer (technical or minimax, commercial in perfect competition and in monopoly, technical-commercial or joint production), excellent Pareto; internalization of environmental externalities: command and control: Pigouvian taxes and subsidies, standards and negotiable permits; the Total Economic Value and the contingent valuation; IPAT model; Ecological footprint; Coase theorem; environmental Kuznets curve.

2.3. Semiotic-hermeneutic and bio-technological episteme: the triangle of the three surpluses, Economics of the environment, ecological economics and new economics, new theory of value-energy / information, new theory of capital and monetary form of investments. Energy and information, entropy / neg-entropy, mathematical and semantic information. Economics as a linguistic and communicative activity, evaluation as a process of signification, information and communication and as a semiotic-hermeneutic activity. Comparison between similar and dissimilar.

3. Values ​​and evaluations: classifications, methods, procedures and calculations

3.1. Classifications of estimation (or valuation) methods and procedures:

3.1.1 The Serpierian paradigm and the estimate of private assets: market, capitalization, transformation, subrogation, cost, complementary values.

3.1.2. Valuation of public investments; Cost Benefit Analysis; Cost-Revenue Analysis;;

3.1.3. Multi-criteria analysis.

3.1.4. Intertemporal or financial mathematics preference coefficients.

4. Private and public territorial evaluations

4.1. Urban estimation micro-estimates

4.1.1. The real estate market;

4.1.2. Estimation of urban buildings and building areas;

4.1.3. Estimation of costs: the estimated metric calculation.

4.2. Legal estimates:

4.2.1. Expropriations for reasons of public utility;

4.2.2. Compulsory predial servitude and military servitude;

4.2.3. Usufruct, use, housing, annuity, surface right;

4.2.4. Damage estimate.

4.2.5. The technician in the process: arbitration and technical advice from the office and from part:

4.3. Cadastral estimate

4.3.1. Land Registry;

4.3.2. Buildings Cadastre.

4.4. Territorial-urban estimation: macro-estimates

4.4.1. Evaluation of plans and projects and environmental assessments; urban and environmental equalization;

4.4.2. The evaluation of the cultural-environmental heritage.

4.4.3. The assessment of environmental damage: restoration costs, illegal profit and dis-value of social use; The Consolidated Law (D.L. 152/2006): from the compensation regime to the remedial one; primary, complementary and compensatory repair.

4.5. Monetary valuations, Cost-Effectiveness Analysis, Cost-Revenue Analysis, Cost-Benefit Analysis; distinction between benefits and revenues, between revenues and revenues, between costs and expenses; classification of the assets: tangible, intangible and immeasurable; primary and secondary, direct, indirect, induced and derivatives; differences between ACB and ACR: the benefits; market prices and shadow prices; the Willingness to Pay, the Time Frame, the Social Discount Rate; compensation principles; the question of equity: weighing of benefits and costs; investment selection criteria: the NPV, the B / C ratio, the External Rate of Return; the Internal Rate of Return; the time of collection of the discounted capital (Discounted Payback Period - DPbP).

4.6. Non-monetary valuations: MultiCriteria Analysis; Multi-Criteria Decision Making (MCDM) additive procedures: aggregation procedure into a single criterion; interactive: the interactive Matrix; outclassing: Electre II method; Environmental Impact Assessment (EIA), Strategic Environmental Assessment (SEA).

5. Exercises

5.1. The market and real estate valuation;

5.2. Economic-environmental analysis and evaluation of historical building-urban fabrics.

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