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Analyzing building height restrictions - predicted impacts, welfare costs, and a case study of Bangalore, India

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  • Bertaud, Alain
  • Brueckner, Jan K.

Abstract

The authors analyze the effects of building height restrictions, providing a concrete welfare cost estimate for the city of Bangalore, India. Relying on several theoretical results, their analysis shows that the welfare cost imposed on its residents by Bangalore's building height restriction ranges between 3 and 6 percent of household consumption. This burden represents a significant share of individual resources, and its presence may push many marginal households into poverty.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3290.

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Date of creation: 01 Apr 2004
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Handle: RePEc:wbk:wbrwps:3290

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Related research

Keywords: Public Health Promotion; Environmental Economics&Policies; Public Sector Economics&Finance; Economic Theory&Research; Banks&Banking Reform; Economic Theory&Research; Environmental Economics&Policies; Public Sector Economics&Finance; Urban Housing; Banks&Banking Reform;

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  1. Calfee, John & Winston, Clifford, 1998. "The value of automobile travel time: implications for congestion policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 83-102, July.
  2. Pines, David & Sadka, Efraim, 1986. "Comparative statics analysis of a fully closed city," Journal of Urban Economics, Elsevier, vol. 20(1), pages 1-20, July.
  3. Arnott, Richard J. & MacKinnon, James G., 1977. "Measuring the costs of height restrictions with a general equilibrium model," Regional Science and Urban Economics, Elsevier, vol. 7(4), pages 359-375, November.
  4. Wheaton, William C., 1974. "A comparative static analysis of urban spatial structure," Journal of Economic Theory, Elsevier, vol. 9(2), pages 223-237, October.
  5. Bertaud, Alain & Renaud, Bertrand, 1997. "Socialist Cities without Land Markets," Journal of Urban Economics, Elsevier, vol. 41(1), pages 137-151, January.
  6. Brueckner, Jan K., 1987. "The structure of urban equilibria: A unified treatment of the muth-mills model," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 20, pages 821-845 Elsevier.
  7. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
  8. Wheaton, William C., 1998. "Land Use and Density in Cities with Congestion," Journal of Urban Economics, Elsevier, vol. 43(2), pages 258-272, March.
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Cited by:
  1. Mozart Vitor Serra & David E. Dowall & Diana Motta & Michael Donovan, 2005. "Urban Land Markets and Urban Land Development : an Examination of three Brazilian Cities : Brasília, Curitiba and Recife," Discussion Papers 1082, Instituto de Pesquisa Econômica Aplicada - IPEA.
  2. Fran?ois Ortalo-Magn? & Andrea Prat, 2014. "On the Political Economy of Urban Growth: Homeownership versus Affordability," American Economic Journal: Microeconomics, American Economic Association, vol. 6(1), pages 154-81, February.
  3. François Ortalo-Magné & Andrea Prat, 2007. "The political economy of housing supply: homeowners, workers, and voters," LSE Research Online Documents on Economics 3678, London School of Economics and Political Science, LSE Library.
  4. Buckley, Robert M. & Kalarickal, Jerry, 2004. "Shelter strategies for the urban poor : idiosyncratic and successful, but hardly mysterious," Policy Research Working Paper Series 3427, The World Bank.
  5. Lall, Somik V. & Suri, Ajay & Deichmann, Uwe, 2005. "Household savings and residential mobility in informal settlements," Policy Research Working Paper Series 3596, The World Bank.
  6. World Bank, 2006. "Urban Land and Housing Markets in the Punjab, Pakistan," World Bank Other Operational Studies 8280, The World Bank.
  7. Baker, Judy & Basu, Rakhi & Cropper, Maureen & Lall, Somik & Takeuchi, Akie, 2005. "Urban poverty and transport : the case of Mumbai," Policy Research Working Paper Series 3693, The World Bank.
  8. World Bank, 2007. "The Evolving Role of World Bank Urban Shelter Projects : Addressing Land Market and Economy-wide Constraints," World Bank Other Operational Studies 12669, The World Bank.

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