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The dynamic effects of open-space conservation policies on residential development density

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  • Lewis, David J.
  • Provencher, Bill
  • Butsic, Van
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    Abstract

    Recent economic analyses emphasize that designated open space increases the rents on neighboring residential land, and likewise, the probability of undeveloped land converting to residential uses. This paper addresses a different question: What is the effect of local open-space conservation on the rate of growth in the density of residential land? A discrete-choice econometric model of lakeshore development is estimated with a unique parcel-level spatial-temporal dataset, using maximum simulated likelihood to account for (i) the panel structure of the data, (ii) unobserved spatial heterogeneity, and (iii) sample selection resulting from correlated unobservables. Results indicate that, contrary to the intuition derived from the current literature, local open-space conservation policies do not increase the rate of growth in residential density, and some open-space conservation policies may reduce the rate of growth in residential development density. This is consistent with land-value complementarity between local open space and parcel size.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

    Volume (Year): 57 (2009)
    Issue (Month): 3 (May)
    Pages: 239-252

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    Handle: RePEc:eee:jeeman:v:57:y:2009:i:3:p:239-252

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    Web page: http://www.elsevier.com/locate/inca/622870

    Related research

    Keywords: Spatial modeling Land-use change Open space Development density Shoreline development Zoning Maximum simulated likelihood;

    References

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    Cited by:
    1. Matthew Chadourne & Seong-Hoon Cho & Roland Roberts, 2013. "Identifying priority target areas for the Knoxville–Knox County hillside and ridgetop protection plan: using the value of visual amenity during the real estate boom of 2002–2007 and the recession ," The Annals of Regional Science, Springer, Springer, vol. 50(3), pages 911-934, June.
    2. Kovacs, Kent F. & Polasky, Stephen & Keeler, Bonnie & Pennington, Derric & Nelson, Erik & Plantinga, Andrew J. & Taff, Steven J., 2012. "Evaluating the Return in Ecosystem Services from Investment in Public Land Acquisitions," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington, Agricultural and Applied Economics Association 124660, Agricultural and Applied Economics Association.
    3. Saraly Andrade de Sá & Charles Palmer & Salvatore Di Falco, 2012. "Dynamics of indirect land-use change: empirical evidence from Brazil," Grantham Research Institute on Climate Change and the Environment Working Papers, Grantham Research Institute on Climate Change and the Environment 74, Grantham Research Institute on Climate Change and the Environment.
    4. Lewis, David J. & Alig, Ralph J., 2009. "Empirical Methods for Modeling Landscape Change, Ecosystem Services, and Biodiversity," Western Economics Forum, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 8(01).
    5. Maria A. Cunha-e-Sa & Sofia F. Franco, 2013. "The Effects of Land-Use Development Policies on Forest Management," FEUNL Working Paper Series, Universidade Nova de Lisboa, Faculdade de Economia wp576, Universidade Nova de Lisboa, Faculdade de Economia.
    6. Lewis, David J., 2010. "An economic framework for forecasting land-use and ecosystem change," Resource and Energy Economics, Elsevier, Elsevier, vol. 32(2), pages 98-116, April.
    7. Gottlieb, Paul D. & O’Donnell, Anthony & Rudel, Thomas & O’Neill, Karen & McDermott, Melanie, 2012. "Determinants of local housing growth in a multi-jurisdictional region, along with a test for nonmarket zoning," Journal of Housing Economics, Elsevier, Elsevier, vol. 21(4), pages 296-309.
    8. Wrenn, Douglas H. & Sam, Abdoul G. & Irwin, Elena G., 2012. "Searching for the Urban Fringe: Exploring Spatio-Temporal Variations in the Effect of Distance versus Local Interactions on Residential Land Conversion Using a Conditionally-Parametric Discrete-Time D," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington, Agricultural and Applied Economics Association 125007, Agricultural and Applied Economics Association.
    9. Elena G. Irwin & Andrew M. Isserman & Maureen Kilkenny & Mark D. Partridge, 2010. "A Century of Research on Rural Development and Regional Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 92(2), pages 522-553.
    10. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 50(1), pages 65-91.

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