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A Discrete Space Urban Model With Environmental Amenities

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Author Info
Tajibaeva, Liaila
Haight, Robert
Polasky, Stephen

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Abstract

This paper analyzes the effects of providing environmental amenities associated with open space in a discrete space urban model. The discrete space model assumes distinct neighborhoods in which developable land is homogeneous within a neighborhood but heterogeneous across neighborhoods. We solve for equilibrium allocation of development, prices and welfare given a pattern of open space provision. We also analyze the optimal provision of open space across neighborhoods. In equilibrium, housing density and price in a neighborhood is increasing in the amount of open space provided in that neighborhood. Whether housing density and prices in other neighborhoods increases or decreases depends on whether the push from reduced availability of developable land in the neighborhood with increased open space, or the pull of the local amenity value in that neighborhood, is stronger.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 21907.

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Date of creation: 2003
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Handle: RePEc:ags:aaea03:21907

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Keywords: Environmental Economics and Policy;

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References listed on IDEAS
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  1. Mills, David E., 1981. "Growth, speculation and sprawl in a monocentric city," Journal of Urban Economics, Elsevier, vol. 10(2), pages 201-226, September. [Downloadable!] (restricted)
  2. Nelson, Jon P., 1979. "Airport noise, location rent, and the market for residential amenities," Journal of Environmental Economics and Management, Elsevier, vol. 6(4), pages 320-331, December. [Downloadable!] (restricted)
  3. Parks, Peter J. & Schorr, James P., 1997. "Sustaining Open Space Benefits in the Northeast: An Evaluation of the Conservation Reserve Program," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 85-94, January. [Downloadable!] (restricted)
  4. Mitchell Polinsky, A. & Shavell, Steven, 1976. "Amenities and property values in a model of an urban area," Journal of Public Economics, Elsevier, vol. 5(1-2), pages 119-129. [Downloadable!] (restricted)
  5. Vossler, Christian A. & Kerkvliet, Joe & Polasky, Stephen & Gainutdinova, Olesya, 2003. "Externally validating contingent valuation: an open-space survey and referendum in Corvallis, Oregon," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 261-277, June. [Downloadable!] (restricted)
  6. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September. [Downloadable!] (restricted)
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  7. Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, vol. 43(1), pages 91-107, January. [Downloadable!] (restricted)
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