Landscape Agreement, Government Subsidy, Enforcing Regulations and the Coalition Game

Abstract

As one method of preserving scenery and landscape is the Landscape Agreement. In this paper, we will use the coalition game to analyse the mechanism of entering a landscape agreement. Through the inspection, it was found that a landscape agreement only becomes possible with a certain level of supporters and the optimal situation is when all participants agree. On the other hand, it was identified that free riders can become obstacles in reaching a universal agreement. We next examined the mechanism of government subsidies for buildings that take landscape into consideration and the enforcement of penalties for buildings that do not. As a result, we learned that the cost of subsidies and enforcement of regulations influences the number of supporters required for the landscape agreement and in preventing free riders.