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How would the concept of unjust enrichment help to correct externalities?



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Positive Development From Vicious Circles to V

How would the concept of unjust enrichment help to correct externalities?
Immediate physical harm can lead to legal action with possible compensation and even punishment.
However, there is no limit on how much profit can be made at the long-term expense of the community 
– unless there is also 
financial
impropriety. This is ironic, because people can be compensated for 
financial losses. While externalities refer to the transfer of private costs to the public, again, we are 
using the term ‘internalities’ to refer to the inequitable transfer of public benefits to private developers.
Vicious circles are maintained by ‘internalities’ or excessive profits that result from externalities, or 
excessive pollution. Some inequitable resource transfers might reduce environmental impacts in the 
short term, but they eventually militate against sustainability. So we need to consider other balance 
sheets, such as the changing balance between the general public and those with escalating power and 
control over the public estate. If we want to find cost-effective eco-solutions that make everyone better 
off, we need auditing methods that make the resource transfers embedded in existing or proposed 
development 
transparent
. One way to do this, then, is to recognize the ‘unjust enrichment’ that occurs 
through inequitable resource transfers. This is, in fact, a legal term which refers to people who receive 
an inordinate benefit at the expense of others.
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In that context, unjust enrichment is a remedy or 
measure of damage; it is not a crime or misdemeanour in itself. But it can serve as a concept to guide 
planning and decision-making. It has a precedent in the concept of ‘betterment’ in planning (like 
capital gains). In planning, however, betterment usually refers to increases in land or property value 
due to public planning regulations, not the lack thereof.


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Regional Sustainability Audits

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