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Does urban sprawl increase the costs of providing local public services? Evidence from Spanish municipalities

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Author Info
Albert Solé-Ollé () (Universitat de Barcelona & IEB)
Miriam Hortas Rico () (Universitat de Barcelona & IEB)
Abstract

This paper examines the impact of urban sprawl, a phenomenon of particular interest in Spain, which is currently experiencing this process of rapid, low-density urban expansion. Many adverse consequences are attributed to urban sprawl (e.g., traffic congestion, air pollution and social segregation), though here we are concerned primarily with the rising costs of providing local public services. Our initial aim is to develop an accurate measure of urban sprawl so that we might empirically test its impact on municipal budgets. Then, we undertake an empirical analysis using a cross-sectional data set of 2,500 Spanish municipalities for the year 2003 and a piecewise linear function to account for the potentially nonlinear relationship between sprawl and local costs. The estimations derived from the expenditure equations for both aggregate and six disaggregated spending categories indicate that low-density development patterns lead to greater provision costs of local public services.

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Publisher Info
Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2008/6.

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Length: 39 pages
Date of creation: 2008
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Handle: RePEc:ieb:wpaper:2009/3/doc2008-6

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Related research
Keywords: Urban sprawl; local public spending.;

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Find related papers by JEL classification:
H1 - Public Economics - - Structure and Scope of Government
H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
R51 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

References listed on IDEAS
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  1. Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, vol. 63(3), pages 280-96, June.
    Other versions:
  2. Ladd, Helen F., 1994. "Fiscal impacts of local population growth: A conceptual and empirical analysis," Regional Science and Urban Economics, Elsevier, vol. 24(6), pages 661-686, December. [Downloadable!] (restricted)
  3. Brueckner, Jan K & Kim, Hyun-A, 2003. "Urban Sprawl and the Property Tax," International Tax and Public Finance, Springer, vol. 10(1), pages 5-23, January. [Downloadable!] (restricted)
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  4. Mieszkowski, Peter & Mills, Edwin S, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-47, Summer. [Downloadable!] (restricted)
  5. Song, Yan & Zenou, Yves, 2005. "Property Tax and Urban Sprawl: Theory and Implications for U.S. Cities," Working Paper Series 648, Research Institute of Industrial Economics. [Downloadable!]
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  6. Glaeser, Edward L. & Kahn, Matthew E., 2004. "Sprawl and urban growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 56, pages 2481-2527 Elsevier. [Downloadable!] (restricted)
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  7. Sole-Olle, Albert, 2006. "Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain," Journal of Urban Economics, Elsevier, vol. 59(1), pages 32-53, January. [Downloadable!] (restricted)
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  8. John I. Carruthers, 2002. "Fragmentation and Sprawl: Evidence from Interregional Analysis," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 33(3), pages 312-340. [Downloadable!] (restricted)
  9. Thomas J. Nechyba & Randall P. Walsh, 2004. "Urban Sprawl," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 177-200, Fall. [Downloadable!] (restricted)
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