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Welfare Effects of Anti-Sprawl Policies in the Presence of Urban Decline

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Author Info

  • Bento, Antonio M.
  • Franco, Sofia F.
  • Kaffine, Daniel

Abstract

This paper extends first-best analysis of anti-sprawl policies, such as development taxes, and examines the welfare effects of development taxes in the presence of urban decline at the city core. We find that anti-sprawl policies generate several important feedbacks within the urban system, generating additional welfare gains and affecting the level of urban decline and suburban sprawl. Further, the optimal development tax exceeds the (first-best) Pigouvian level, irrespective of whether or not revenues are returned lump-sum to all landowners or earmarked for urban decline mitigation.

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File URL: http://purl.umn.edu/120272
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Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 40 (2011)
Issue (Month): 3 (December)
Pages:

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Handle: RePEc:ags:arerjl:120272

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Web page: http://www.narea.org/
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Related research

Keywords: urban sprawl; development taxes; second-best policies; spatial modeling; Land Economics/Use;

References

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  1. Edward L. Glaeser & Joseph Gyourko, 2005. "Urban Decline and Durable Housing," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 345-375, April.
  2. Paul Cheshire & Stephen Sheppard, 2001. "The Welfare Economics of Land Use Planning," Department of Economics Working Papers 2001-03, Department of Economics, Williams College.
  3. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
  4. Elena G. Irwin, 2002. "The Effects of Open Space on Residential Property Values," Land Economics, University of Wisconsin Press, vol. 78(4), pages 465-480.
  5. Jan K. Brueckner & Robert W. Helsley, 2009. "Sprawl and Blight," CESifo Working Paper Series 2792, CESifo Group Munich.
  6. Eid, Jean & Overman, Henry G. & Puga, Diego & Turner, Matthew A., 2008. "Fat city: Questioning the relationship between urban sprawl and obesity," Journal of Urban Economics, Elsevier, vol. 63(2), pages 385-404, March.
  7. Andrew J. Plantinga & Stephanie Bernell, 2007. "The Association Between Urban Sprawl And Obesity: Is It A Two-Way Street?," Journal of Regional Science, Wiley Blackwell, vol. 47(5), pages 857-879.
  8. Anas, Alex & Rhee, Hyok-Joo, 2006. "Curbing excess sprawl with congestion tolls and urban boundaries," Regional Science and Urban Economics, Elsevier, vol. 36(4), pages 510-541, July.
  9. Kutty Nandinee K., 1995. "A Dynamic Model of Landlord Reinvestment Behavior," Journal of Urban Economics, Elsevier, vol. 37(2), pages 212-237, March.
  10. Marcy Burchfield & Henry G. Overman & Diego Puga & Matthew A. Turner, 2006. "Causes of Sprawl: A Portrait from Space," The Quarterly Journal of Economics, MIT Press, vol. 121(2), pages 587-633, May.
  11. Bento, Antonio M. & Franco, Sofia F. & Kaffine, Daniel, 2006. "The efficiency and distributional impacts of alternative anti-sprawl policies," Journal of Urban Economics, Elsevier, vol. 59(1), pages 121-141, January.
  12. David Albouy, 2008. "Are Big Cities Bad Places to Live? Estimating Quality of Life across Metropolitan Areas," NBER Working Papers 14472, National Bureau of Economic Research, Inc.
  13. Brueckner, Jan K. & Largey, Ann G., 2008. "Social interaction and urban sprawl," Journal of Urban Economics, Elsevier, vol. 64(1), pages 18-34, July.
  14. Joseph Gyourko & Albert Saiz, 2003. "Urban decline and housing reinvestment: the role of construction costs and the supply side," Working Papers 03-9, Federal Reserve Bank of Philadelphia.
  15. Bucholtz, Shawn & Geoghegan, Jacqueline & Lynch, Lori, 2003. "Capitalization of Open Spaces into Housing Values and the Residential Property Tax Revenue Impacts of Agricultural Easement Programs," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 32(1), April.
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Citations

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Cited by:
  1. Lynch, Lori & Geoghegan, Jacqueline, 2011. "FOREWORD: The Economics of Land Use Change: Advancing the Frontiers," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(3), December.
  2. Thomas Coisnon & Walid OUESLATI & Julien Salanié, 2012. "Agri-environmental policy and urban sprawl patterns: A general equilibrium analysis," Working Papers halshs-00753221, HAL.

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