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Farmland Preservation and Residential Density: Can Development Rights Markets Affect Land Use?

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Author Info
McConnell, Virginia
Kopits, Elizabeth
Walls, Margaret

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Abstract

This paper examines transferable development rights (TDRs) policies as a way to preserve farmland and change the density of development. Characteristics of TDR markets are described, including why they might promote efficiency, and the difficulties that arise in implementing them. Evidence from an established TDR program in Calvert County, Maryland, is used to assess the potential for TDRs to influence subdivision density, and to achieve local land preservation goals. The Calvert program has succeeded in creating an active and stable TDR market, and has therefore preserved a large amount of farmland in the region. But we find that the demand for additional density permitted with TDRs occurs mostly in rural areas and not in the higher density town centers and residential areas.

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File URL: http://purl.umn.edu/10240
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Publisher Info
Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 34 (2005)
Issue (Month): 2 (October)
Pages:
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Handle: RePEc:ags:arerjl:10240

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Related research
Keywords: land preservation; development; markets; density; Land Economics/Use;

References listed on IDEAS
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  1. Lori Lynch & Sabrina J. Lovell, 2003. "Combining Spatial and Survey Data to Explain Participation in Agricultural Land reservation Programs," Land Economics, University of Wisconsin Press, vol. 79(2), pages 259-276. [Downloadable!] (restricted)
  2. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey Elizabeth M., 2005. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521023894, May.
    Other versions:
    • Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey Elizabeth M., 2000. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521660839, May.
  3. Levinson, Arik, 1997. "Why oppose TDRs?: Transferable development rights can increase overall development," Regional Science and Urban Economics, Elsevier, vol. 27(3), pages 283-296, June. [Downloadable!] (restricted)
  4. Cannaday, Roger E & Colwell, Peter F, 1990. "Optimization of Subdivision Development," The Journal of Real Estate Finance and Economics, Springer, vol. 3(2), pages 195-206, June.
  5. McMillen, Daniel P. & McDonald, John F., 1991. "Urban land value functions with endogenous zoning," Journal of Urban Economics, Elsevier, vol. 29(1), pages 14-27, January. [Downloadable!] (restricted)
  6. Glaeser, Edward L. & Kahn, Matthew E., 2004. "Sprawl and urban growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 56, pages 2481-2527 Elsevier. [Downloadable!] (restricted)
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  7. Mills, David E., 1980. "Transferable development rights markets," Journal of Urban Economics, Elsevier, vol. 7(1), pages 63-74, January. [Downloadable!] (restricted)
  8. Hahn, Robert W, 1984. "Market Power and Transferable Property Rights," The Quarterly Journal of Economics, MIT Press, vol. 99(4), pages 753-65, November. [Downloadable!] (restricted)
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  9. Heimlich, Ralph E. & Anderson, William D., 2001. "Development At The Urban Fringe And Beyond: Impacts On Agriculture And Rural Land," Agricultural Economics Reports 33943, United States Department of Agriculture, Economic Research Service. [Downloadable!]
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