IDEAS home Printed from https://ideas.repec.org/a/eee/resene/v58y2019ics0928765518301131.html
   My bibliography  Save this article

Price based policies for managing residential development: Impacts on water quality

Author

Listed:
  • Wrenn, Douglas H.
  • Klaiber, H. Allen
  • Newburn, David A.

Abstract

Land plays a critical role in determining the health of an urban ecosystem. One of its key roles is regulation of nutrient delivery. In this paper, we combine results from an instrumental variable duration model with a water quality model in a series of land use simulations to examine the impact that several hypothetical land use policies have in limiting nutrient delivery in an urban setting. Our results reveal tradeoffs between objectives for managing urban growth and those for managing water quality. A uniform tax on development reduces developed acreage but increases nutrient delivery. An environmental policy designed to retain forest cover is the most effective at mitigating water quality impacts, albeit with the lowest reduction of acreage developed.

Suggested Citation

  • Wrenn, Douglas H. & Klaiber, H. Allen & Newburn, David A., 2019. "Price based policies for managing residential development: Impacts on water quality," Resource and Energy Economics, Elsevier, vol. 58(C).
    • Handle: RePEc:eee:resene:v:58:y:2019:i:c:s0928765518301131
    DOI: 10.1016/j.reseneeco.2019.101115
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0928765518301131
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.reseneeco.2019.101115?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lewis, David J. & Provencher, Bill & Butsic, Van, 2009. "The dynamic effects of open-space conservation policies on residential development density," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 239-252, May.
    2. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2006. "Land-use change and carbon sinks: Econometric estimation of the carbon sequestration supply function," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 135-152, March.
    3. Patrick Bayer & Christopher Timmins, 2007. "Estimating Equilibrium Models Of Sorting Across Locations," Economic Journal, Royal Economic Society, vol. 117(518), pages 353-374, March.
    4. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    5. Sieg, Holger & Smith, V. Kerry & Banzhaf, H. Spencer & Walsh, Randy, 2002. "Interjurisdictional housing prices in locational equilibrium," Journal of Urban Economics, Elsevier, vol. 52(1), pages 131-153, July.
    6. Christopher R. Cunningham, 2007. "Growth Controls, Real Options, and Land Development," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 343-358, May.
    7. Christian Langpap & Ivan Hascic & JunJie Wu, 2008. "Protecting Watershed Ecosystems through Targeted Local Land Use Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 684-700.
    8. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    9. Wu, JunJie, 2008. "Land Use Changes: Economic, Social, and Environmental Impacts," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 23(4), pages 1-5.
    10. Baltagi, Badi H. & Song, Seuck Heun & Koh, Won, 2003. "Testing panel data regression models with spatial error correlation," Journal of Econometrics, Elsevier, vol. 117(1), pages 123-150, November.
    11. Allen Klaiber, H. & Phaneuf, Daniel J., 2010. "Valuing open space in a residential sorting model of the Twin Cities," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 57-77, September.
    12. Walsh, Randy, 2007. "Endogenous open space amenities in a locational equilibrium," Journal of Urban Economics, Elsevier, vol. 61(2), pages 319-344, March.
    13. David A. Newburn & Peter Berck, 2006. "Modeling Suburban and Rural-Residential Development Beyond the Urban Fringe," Land Economics, University of Wisconsin Press, vol. 82(4), pages 481-499.
    14. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-529, October.
    15. Elena G. Irwin, 2002. "Interacting agents, spatial externalities and the evolution of residential land use patterns," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 31-54, January.
    16. Lewis, David J. & Plantinga, Andrew J. & Nelson, Erik & Polasky, Stephen, 2011. "The efficiency of voluntary incentive policies for preventing biodiversity loss," Resource and Energy Economics, Elsevier, vol. 33(1), pages 192-211, January.
    17. Douglas H. Wrenn & H. Allen Klaiber & David A. Newburn, 2017. "Confronting Price Endogeneity in a Duration Model of Residential Subdivision Development," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(3), pages 661-682, April.
    18. Capozza, Dennis R. & Helsley, Robert W., 1989. "The fundamentals of land prices and urban growth," Journal of Urban Economics, Elsevier, vol. 26(3), pages 295-306, November.
    19. Wrenn, Douglas H. & Irwin, Elena G., 2015. "Time is money: An empirical examination of the effects of regulatory delay on residential subdivision development," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 25-36.
    20. Pinkse, Joris & Slade, Margaret E., 1998. "Contracting in space: An application of spatial statistics to discrete-choice models," Journal of Econometrics, Elsevier, vol. 85(1), pages 125-154, July.
    21. Carmen Carrión-Flores & Elena G. Irwin, 2004. "Determinants of Residential Land-Use Conversion and Sprawl at the Rural-Urban Fringe," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 889-904.
    22. David A. Newburn & Jeffrey S. Ferris, 2017. "Additionality and Forest Conservation Regulation for Residential Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(5), pages 1228-1245.
    23. Nancy Bockstael, 2008. "An Empirical Examination of the Timing of Land Conversions in the Presence of Farmland Preservation Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 613-626.
    24. David A. Newburn & Peter Berck, 2006. "Modeling Suburban and Rural-Residential Development Beyond the Urban Fringe," Land Economics, University of Wisconsin Press, vol. 82(4), pages 481-499.
    25. Daniel P. Bigelow & Andrew J. Plantinga & David J. Lewis & Christian Langpap, 2017. "How Does Urbanization Affect Water Withdrawals? Insights from an Econometric-Based Landscape Simulation," Land Economics, University of Wisconsin Press, vol. 93(3), pages 413-436.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wrenn, Douglas H. & Klaiber, Allen & Newburn, David, 2018. "Price Based Policies for Managing Residential Development and Impacts on Water Quality," 2018 Annual Meeting, August 5-7, Washington, D.C. 274029, Agricultural and Applied Economics Association.
    2. Wrenn, Douglas H. & Klaiber, Allen & Newburn, David, 2017. "Price-Based Policies for Managing Residential Land Development: Impacts on Water Quality," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258578, Agricultural and Applied Economics Association.
    3. Douglas H. Wrenn & H. Allen Klaiber & David A. Newburn, 2017. "Confronting Price Endogeneity in a Duration Model of Residential Subdivision Development," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(3), pages 661-682, April.
    4. 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, vol. 50(1), pages 65-91, February.
    5. Wrenn, Douglas H. & Sam, Abdoul G., 2014. "Geographically and temporally weighted likelihood regression: Exploring the spatiotemporal determinants of land use change," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 60-74.
    6. Carmen Carrión-Flores & Elena G. Irwin, 2017. "A fixed effects logit model of rural land conversion and zoning," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 181-208, January.
    7. Zipp, Katherine Y. & Lewis, David J. & Provencher, Bill, 2017. "Does the conservation of land reduce development? An econometric-based landscape simulation with land market feedbacks," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 19-37.
    8. Michael Brady & Elena Irwin, 2011. "Accounting for Spatial Effects in Economic Models of Land Use: Recent Developments and Challenges Ahead," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(3), pages 487-509, March.
    9. Wrenn, Douglas H. & Irwin, Elena G., 2015. "Time is money: An empirical examination of the effects of regulatory delay on residential subdivision development," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 25-36.
    10. Van Butsic & David J. Lewis & Lindsay Ludwig, 2011. "An Econometric Analysis of Land Development with Endogenous Zoning," Land Economics, University of Wisconsin Press, vol. 87(3), pages 412-432.
    11. Lewis, David J. & Provencher, Bill & Butsic, Van, 2009. "The dynamic effects of open-space conservation policies on residential development density," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 239-252, May.
    12. 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 125007, Agricultural and Applied Economics Association.
    13. Williamson, Samuel E., 2023. "Zoning with quantity restrictions for managing exurban development patterns," 2023 Annual Meeting, July 23-25, Washington D.C. 335866, Agricultural and Applied Economics Association.
    14. David J. Lewis & Bradford L. Barham & Brian Robinson, 2011. "Are There Spatial Spillovers in the Adoption of Clean Technology? The Case of Organic Dairy Farming," Land Economics, University of Wisconsin Press, vol. 87(2), pages 250-267.
    15. Carrión-Flores, Carmen E. & Flores-Lagunes, Alfonso & Guci, Ledia, 2018. "An estimator for discrete-choice models with spatial lag dependence using large samples, with an application to land-use conversions," Regional Science and Urban Economics, Elsevier, vol. 69(C), pages 77-93.
    16. Li, Sheng & Nadolnyak, Denis & Hartarska, Valentina, 2019. "Agricultural land conversion: Impacts of economic and natural risk factors in a coastal area," Land Use Policy, Elsevier, vol. 80(C), pages 380-390.
    17. Wendong Zhang & Douglas H. Wrenn & Elena G. Irwin, 2017. "Spatial Heterogeneity, Accessibility, and Zoning: An Empirical Investigation of Leapfrog Development," Journal of Economic Geography, Oxford University Press, vol. 17(3), pages 547-570.
    18. Newburn, David & Ferris, Jeffrey, "undated". "The Effect of Downzoning on Spatial Development Patterns," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170446, Agricultural and Applied Economics Association.
    19. 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 124660, Agricultural and Applied Economics Association.
    20. Bell, Kathleen P. & Kline, Jeffrey D., 2009. "Assessing Patterns in the Conversion of Rural Lands to Residential Use," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49530, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Land use; Water quality; Duration models; Price endogeneity;
    All these keywords.

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:58:y:2019:i:c:s0928765518301131. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505569 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.