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Assessing the efficiency of local open space provision

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  • Lang, Corey

Abstract

This paper tests the efficiency of local provision of land conservation. I examine how housing prices, which capitalize open space amenities and future tax obligations, change after municipalities vote on referendums for conservation spending. Using a dynamic regression discontinuity based on voting outcomes, results suggest that average housing prices increase about 0.68–1.12% for every $1000 per household of open space spending authorized, which indicates inefficiency and underprovision of conservation. I also examine tax capitalization and supply side explanations for estimated capitalization.

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  • Lang, Corey, 2018. "Assessing the efficiency of local open space provision," Journal of Public Economics, Elsevier, vol. 158(C), pages 12-24.
    • Handle: RePEc:eee:pubeco:v:158:y:2018:i:c:p:12-24
    DOI: 10.1016/j.jpubeco.2017.12.007
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    Cited by:

    1. Franco, Sofia F. & Cutter, W. Bowman, 2022. "The determinants of non-residential real estate values with special reference to environmental local amenities," Ecological Economics, Elsevier, vol. 201(C).
    2. Sumit Agarwal & Yongheng Deng & Jia He & Yonglin Wang & Qi Zhang, 2023. "Lenders’ pricing strategy: Do neighborhood risks matter?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(4), pages 1011-1047, July.
    3. Daepp, Madeleine I.G. & Bunten, Devin Michelle & Hsu, Joanne W., 2023. "The Effect of Racial Composition on Neighborhood Housing Prices: Evidence from Hurricane Katrina-Induced Migration," Journal of Urban Economics, Elsevier, vol. 134(C).
    4. Liu, Pengfei & Li, Yanggu & Zhang, Wei, 2023. "Local Economic Benefits of the Environmental Quality Incentives Program: Evidence from Rural Housing Markets," 2023 Annual Meeting, July 23-25, Washington D.C. 335843, Agricultural and Applied Economics Association.
    5. Kalinin, Alexey V. & Sims, Katharine R.E. & Meyer, Spencer R. & Thompson, Jonathan R., 2023. "Does land conservation raise property taxes? Evidence from New England cities and towns," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    6. Lang, Corey & Prendergast, Patrick & Pearson-Merkowitz, Shanna, 2018. "How does municipal policy affect state and local actions? Evidence from land conservation spending," Resource and Energy Economics, Elsevier, vol. 54(C), pages 23-36.
    7. Prendergast, Patrick & Pearson-Merkowitz, Shanna & Lang, Corey, 2019. "The individual determinants of support for open space bond referendums," Land Use Policy, Elsevier, vol. 82(C), pages 258-268.
    8. H. Spencer Banzhaf, 2021. "Difference-in-Differences Hedonics," Journal of Political Economy, University of Chicago Press, vol. 129(8), pages 2385-2414.

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    More about this item

    Keywords

    Local public finance; Open space; Hedonic valuation; Regression discontinuity; Voting; Referendum; Tax capitalization; Homevoter hypothesis;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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