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The Economics Of Land-Zoning

Author

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  • Goetz, Renan-Ulrich
  • Zilberman, David

Abstract

Land-use restrictions are frequently applied to separate polluting from non-polluting activities. In contrast to the existing literature, we incorporate spatial and intertemporal aspects of the problem simultaneously and determine the border of the zones endogenously. The results, based on a two-stage optimization method, show that non-spatially differentiated Pigouvian taxes on the final emissions are able to establish the socially optimal outcome. Second-best instruments alone, such as a spatially differentiated tax on inputs or outputs are not able to support the socially optimal outcome and need to be complemented by land-zoning or land-use taxes. We compare the efficiency of different spatial environmental policies such as land-use taxes or land zoning. The necessary changes required to transform a spatially optimal, yet static, environmental policy into an intertemporally and spatially optimal environmental policy are presented and discussed.

Suggested Citation

  • Goetz, Renan-Ulrich & Zilberman, David, 2000. "The Economics Of Land-Zoning," 2000 Annual meeting, July 30-August 2, Tampa, FL 21828, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea00:21828
    DOI: 10.22004/ag.econ.21828
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    Cited by:

    1. Goetz, Renan U. & Berga, Dolors, 2004. "Nonpoint source pollution, space, time, and asymmetric information, a deposit refund approach," Working Papers of the Department of Economics, University of Girona 10, Department of Economics, University of Girona.
    2. Athanasios Kampas & Ben White, 2004. "Administrative Costs and Instrument Choice for Stochastic Non-point Source Pollutants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(2), pages 109-133, February.

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