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Wet Growth: Effects Of Water Policies On Land Use In The American West

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  • Ellen Hanak
  • Ada Chen

Abstract

ABSTRACT Rapid population growth and increasing water development costs have prompted many western governments to condition residential development approval on the adequacy of water supplies. We examine the effects of these regulations on housing supply in Colorado and New Mexico using fixed‐effects panel regressions. Our findings suggest that price‐based tools to ensure water availability may be a preferred regulatory alternative to quantity restrictions. Attempts to restrict groundwater basin access have not unambiguously corrected negative externalities related to growth. Meanwhile, Colorado cities' aggressive use of impact fees has facilitated water resource development, without limiting growth.

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  • Ellen Hanak & Ada Chen, 2007. "Wet Growth: Effects Of Water Policies On Land Use In The American West," Journal of Regional Science, Wiley Blackwell, vol. 47(1), pages 85-108, February.
    • Handle: RePEc:bla:jregsc:v:47:y:2007:i:1:p:85-108
    DOI: 10.1111/j.1467-9787.2007.00501.x
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    1. Ellen Hanak, 2008. "Is Water Policy Limiting Residential Growth? Evidence from California," Land Economics, University of Wisconsin Press, vol. 84(1), pages 31-50.
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    Cited by:

    1. Aaron Strong & V. Kerry Smith, 2010. "Reconsidering the Economics of Demand Analysis with Kinked Budget Constraints," Land Economics, University of Wisconsin Press, vol. 86(1), pages 173-190.
    2. Ellen Hanak, 2008. "Is Water Policy Limiting Residential Growth? Evidence from California," Land Economics, University of Wisconsin Press, vol. 84(1), pages 31-50.

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