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The Implications of Heterogeneous Preferences for Environmental Zoning

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Author Info
Lewis, David J. (U of Wisconsin)
Provencher, Bill
Abstract

This paper examines the effects of environmental zoning policies on lakefront land development, sorting, and economic welfare in a model where agents are heterogeneous in preferences and income. Agents consume lakefront amenities that are endogenous to development and the sorting process yields lakes which differ by amenities and frontage prices. Our findings include the following: i) lakes become more homogeneous with a collapsing price premium as incomes grow, ii) zoning can preserve the sorting process and be welfare improving, and iii) land prices may not capture all welfare effects from zoning.

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File URL: http://www.aae.wisc.edu/pubs/sps/pdf/stpap500.pdf
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Paper provided by University of Wisconsin, Agricultural and Applied Economics in its series Staff Paper Series with number 500.

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Date of creation: Jul 2006
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Handle: RePEc:ecl:wisagr:500

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  1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416. [Downloadable!] (restricted)
  2. Russell Cooper, 1984. "On Allocative Distortions in Problems of Self-Selection," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 568-577, Winter. [Downloadable!] (restricted)
  3. Epple, Dennis & Filimon, Radu & Romer, Thomas, 1993. "Existence of voting and housing equilibrium in a system of communities with property taxes," Regional Science and Urban Economics, Elsevier, vol. 23(5), pages 585-610, November. [Downloadable!] (restricted)
  4. Hamilton, Bruce W, 1976. "Capitalization of Intrajurisdictional Differences in Local Tax Prices," American Economic Review, American Economic Association, vol. 66(5), pages 743-53, December. [Downloadable!] (restricted)
  5. Holger Sieg & V. Kerry Smith & H. Spencer Banzhaf & Randy Walsh, 2004. "Estimating The General Equilibrium Benefits Of Large Changes In Spatially Delineated Public Goods," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(4), pages 1047-1077, November. [Downloadable!] (restricted)
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  6. Epple, Dennis & Platt, Glenn J., 1998. "Equilibrium and Local Redistribution in an Urban Economy when Households Differ in both Preferences and Incomes," Journal of Urban Economics, Elsevier, vol. 43(1), pages 23-51, January. [Downloadable!] (restricted)
  7. Dennis Epple & Holger Sieg, 1999. "Estimating Equilibrium Models of Local Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 645-681, August. [Downloadable!] (restricted)
  8. Fiorenza Spalatro & Bill Provencher, 2001. "An Analysis of Minimum Frontage Zoning to Preserve Lakefront Amenities," Land Economics, University of Wisconsin Press, vol. 77(4), pages 469-481. [Downloadable!] (restricted)
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