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Cost‐Benefit Analysis of Local Land Use Allocation Decisions

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  • John F. McDonald

Abstract

This paper presents standard microeconomic models that are designed to be used in the cost‐benefit analysis of local land use decisions. The models connect these allocation decisions to outcomes in the urban land and labor markets so that costs and benefits can be measured. Benefits to the local jurisdiction of allocating land to industrial use exist if unemployed workers are employed, land values increase, or local tax revenues increase beyond the amount needed to provide the additional public services required.

Suggested Citation

  • John F. McDonald, 2001. "Cost‐Benefit Analysis of Local Land Use Allocation Decisions," Journal of Regional Science, Wiley Blackwell, vol. 41(2), pages 277-299, May.
    • Handle: RePEc:bla:jregsc:v:41:y:2001:i:2:p:277-299
    DOI: 10.1111/0022-4146.00217
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    Cited by:

    1. Paul D. Gottlieb, 2006. "State Aid Formulas and the Local Incentive to Chase (or Shun) Ratables," Urban Studies, Urban Studies Journal Limited, vol. 43(7), pages 1087-1103, June.
    2. Roy, Sandip, 2021. "Risk-informed land-use planning in the Indian context: A social cost-benefit analysis," Land Use Policy, Elsevier, vol. 108(C).
    3. Burnett, Perry & Cutler, Harvey & Thresher, Ray, 2007. "The Impact of Tourism for a Small City: A CGE Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(3), pages 1-10.
    4. Yao Lu & Min Zhou & Guoliang Ou & Zuo Zhang & Li He & Yuxiang Ma & Chaonan Ma & Jiating Tu & Siqi Li, 2021. "Sustainable Land-Use Allocation Model at a Watershed Level under Uncertainty," IJERPH, MDPI, vol. 18(24), pages 1-19, December.
    5. Mark D. Partridge & Dan S. Rickman, 2012. "Integrating Regional Economic Development Analysis and Land Use Economics," Economics Working Paper Series 1203, Oklahoma State University, Department of Economics and Legal Studies in Business.
    6. Rachel Weber & Saurav Dev Bhatta & David Merriman, 2003. "Does Tax Increment Financing Raise Urban Industrial Property Values?," Urban Studies, Urban Studies Journal Limited, vol. 40(10), pages 2001-2021, September.
    7. Lijing Tang & Dongyan Wang, 2018. "Optimization of County-Level Land Resource Allocation through the Improvement of Allocation Efficiency from the Perspective of Sustainable Development," IJERPH, MDPI, vol. 15(12), pages 1-19, November.
    8. Jason Winfree & Jill McCluskey & Ron Mittelhammer, 2006. "Buyer-Type Effects in Conservation and Preservation Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 33(2), pages 167-179, September.
    9. Jin, Wanfu & Zhou, Chunshan & Zhang, Guojun, 2020. "Characteristics of state-owned construction land supply in Chinese cities by development stage and industry," Land Use Policy, Elsevier, vol. 96(C).
    10. Paul F. Byrne, 2017. "Have Post-Kelo Restrictions on Eminent Domain Influenced State Economic Development?," Economic Development Quarterly, , vol. 31(1), pages 81-91, February.

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