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The Effects of Critical Habitat Designation on Housing Supply: An Analysis of California Housing Construction Activity

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Author Info
Jeffrey E. Zabel
Robert W. Paterson

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Abstract

Under the Endangered Species Act, the U.S. Fish and Wildlife Service is required to designate critical habitat (CH) for listed species. Designation could result in modification to or delay of residential development projects within habitat boundaries, generating concern over potential housing market impacts. This paper draws upon a large data set of municipal-level (FIPS) building permit issuances and critical habitat designations (CHDs) in California over a 13-year period to identify changes in the spatial and temporal pattern of development activity associated with CHD. We find that the proposal of the median-sized CH results in a 23.5 percent decrease in the supply of housing permits in the short run and a 37.0 percent decrease in the long run. The results indicate the proposal of CH acts as a signal that all development in that FIPS will be more costly. We also find that the impact varies across the two periods in which CH is designated and by the number of years relative to when CH was first proposed. Copyright Blackwell Publishers, 2006

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.0022-4146.2006.00433.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Regional Science.

Volume (Year): 46 (2006)
Issue (Month): 1 ()
Pages: 67-95
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Handle: RePEc:bla:jregsc:v:46:y:2006:i:1:p:67-95

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Stephen Malpezzi, 1994. "Housing Prices, Externalities, and Regulation in U.S. Metropolitan Areas," Wisconsin-Madison CULER working papers 94-08, University of Wisconsin Center for Urban Land Economic Research.
  2. Christopher J. Mayer & C. Tsuriel Somerville, . "Land Use Regulation and New Construction," Zell/Lurie Center Working Papers 331, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania. [Downloadable!] (restricted)
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  3. Mayer, Christopher J. & Somerville, C. Tsuriel, 2000. "Residential Construction: Using the Urban Growth Model to Estimate Housing Supply," Journal of Urban Economics, Elsevier, vol. 48(1), pages 85-109, July. [Downloadable!] (restricted)
  4. John Quigley & Steven Raphael, 2006. "Regulation and the High Cost of Housing in California," Berkeley Program on Housing and Urban Policy, Working Paper Series 1060, Berkeley Program on Housing and Urban Policy. [Downloadable!]
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  5. Brueckner, Jan K., 1987. "The structure of urban equilibria: A unified treatment of the muth-mills model," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 20, pages 821-845 Elsevier. [Downloadable!] (restricted)
  6. DiPasquale Denise & Wheaton William C., 1994. "Housing Market Dynamics and the Future of Housing Prices," Journal of Urban Economics, Elsevier, vol. 35(1), pages 1-27, January. [Downloadable!] (restricted)
  7. Meese, Richard A & Wallace, Nancy E, 1997. "The Construction of Residential Housing Price Indices: A Comparison of Repeat-Sales, Hedonic-Regression and Hybrid Approaches," The Journal of Real Estate Finance and Economics, Springer, vol. 14(1-2), pages 51-73, Jan.-Marc. [Downloadable!] (restricted)
  8. DiPasquale, Denise, 1999. "Why Don't We Know More about Housing Supply?," The Journal of Real Estate Finance and Economics, Springer, vol. 18(1), pages 9-23, January. [Downloadable!] (restricted)
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  1. Gilbert E. Metcalf & Jongsang Park, 2005. "A Comment on the Role of Prices for Excludable Public Goods," Discussion Papers Series, Department of Economics, Tufts University 0524, Department of Economics, Tufts University. [Downloadable!]
    Other versions:
  2. John Quigley & Aaron Swoboda, 2006. "The Urban Impacts of the Endangered Species Act: A General Equilibrium Analysis," Berkeley Program on Housing and Urban Policy, Working Paper Series 1070, Berkeley Program on Housing and Urban Policy. [Downloadable!]
    Other versions:
  3. Antoni Calvo-Armengol & Yannis M. Ioannides, 2005. "Social Networks in Labor Markets," Discussion Papers Series, Department of Economics, Tufts University 0517, Department of Economics, Tufts University. [Downloadable!]
  4. Darlene Chisholm & George Norman, 2005. "When to Exit a Product: Evidence from the U.S. Motion-Pictures Exhibition Market," Discussion Papers Series, Department of Economics, Tufts University 0522, Department of Economics, Tufts University. [Downloadable!]
  5. Darlene C. Chisholm & Margaret S. McMillan & George Norman, 2005. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," Discussion Papers Series, Department of Economics, Tufts University 0523, Department of Economics, Tufts University. [Downloadable!]
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  6. Yannis M. Ioannides & Adriaan R. Soetevent, 2005. "Social Networking and Individual Outcomes Beyond the Mean Field Case," Discussion Papers Series, Department of Economics, Tufts University 0521, Department of Economics, Tufts University. [Downloadable!]
    Other versions:
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