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Spatial externalities and land use regulation: an integrated set of multiple density regulations

Author

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  • Tatsuhito Kono
  • Kirti Kusum Joshi

Abstract

In a continuous city with three distinct land use zones consisting of business, condominiums and detached houses, we derive the formulae which simultaneously optimize regulations on building size, lot size and the three zonal boundaries under the existence of agglomeration economies and traffic congestion. The formulae show that the optimal regulations require a combination of downward and upward adjustments to the market sizes of buildings within both the business zone and the condominium zone, followed by minimum lot size regulation in the housing zone. The outer boundaries of the condominium and housing zones should be regulated inward whereas the optimal business zone boundary regulation depends on the trade-off between agglomeration economies and traffic congestion costs.

Suggested Citation

  • Tatsuhito Kono & Kirti Kusum Joshi, 2018. "Spatial externalities and land use regulation: an integrated set of multiple density regulations," Journal of Economic Geography, Oxford University Press, vol. 18(3), pages 571-598.
    • Handle: RePEc:oup:jecgeo:v:18:y:2018:i:3:p:571-598.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbx021
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    Citations

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    Cited by:

    1. Yoshida, Jun & Kono, Tatsuhito, 2022. "Cities and biodiversity: Spatial efficiency of land use," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 685-705.
    2. Yoshida, Jun & Kono, Tatsuhito, 2020. "Land use policies considering a natural ecosystem," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    3. Takeda, Yoshihiro & Kono, Tatsuhito & Zhang, Yang, 2019. "Welfare effects of floor area ratio regulation on landowners and residents with different levels of income," Journal of Housing Economics, Elsevier, vol. 46(C).
    4. Joto, Keigo & Konagane, Joji & Kono, Tatsuhito & Kuwahara, Masao, 2020. "Optimal Location-dependent Pricing Policies on Railways and Roads in a Continuous City," MPRA Paper 100446, University Library of Munich, Germany.
    5. Aizawa, Hiroki & Kono, Tatsuhito, 2022. "Two-dimensional Geographical Position as a Factor in Determining the Growth and Decline of Retail Agglomeration," MPRA Paper 112274, University Library of Munich, Germany.
    6. Kono, Tatsuhito & Nakajima, Kentaro & Ozane, Kanta, 2023. "Quantitative Impact Analysis of the Centralization of Firms in the Tokyo Metropolitan Area Considering Firm-to-Firm Trade Networks," MPRA Paper 117594, University Library of Munich, Germany.

    More about this item

    Keywords

    Agglomeration economies; traffic congestion; floor area ratio; lot size regulation; urban growth boundary;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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