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Farmland Preservation and Residential Density: Can Development Rights Markets Affect Land Use?

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  • McConnell, Virginia
  • Kopits, Elizabeth
  • Walls, Margaret

Abstract

This paper examines transferable development rights (TDRs) policies as a way to preserve farmland and change the density of development. Characteristics of TDR markets are described, including why they might promote efficiency, and the difficulties that arise in implementing them. Evidence from an established TDR program in Calvert County, Maryland, is used to assess the potential for TDRs to influence subdivision density, and to achieve local land preservation goals. The Calvert program has succeeded in creating an active and stable TDR market, and has therefore preserved a large amount of farmland in the region. But we find that the demand for additional density permitted with TDRs occurs mostly in rural areas and not in the higher density town centers and residential areas.

Suggested Citation

  • McConnell, Virginia & Kopits, Elizabeth & Walls, Margaret, 2005. "Farmland Preservation and Residential Density: Can Development Rights Markets Affect Land Use?," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(2), pages 131-144, October.
    • Handle: RePEc:cup:agrerw:v:34:y:2005:i:02:p:131-144_00
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    Cited by:

    1. Chau, Nancy H. & Qin, Yu & Zhang, Weiwen, 2015. "Networked Leaders in the Shadow of the Market – A Chinese Experiment in Allocating Land Conversion Rights," Working Papers 250022, Cornell University, Department of Applied Economics and Management.
    2. Kunpeng Wang & Minghao Ou & Zinabu Wolde, 2020. "Regional Differences in Ecological Compensation for Cultivated Land Protection: An Analysis of Chengdu, Sichuan Province, China," IJERPH, MDPI, vol. 17(21), pages 1-16, November.
    3. Katrina Z S Schwartz, 2013. "Panther Politics: Neoliberalizing Nature in Southwest Florida," Environment and Planning A, , vol. 45(10), pages 2323-2343, October.
    4. Chau, Nancy H. & Qin, Yu & Zhang, Weiwen, 2016. "Leader Networks and Transaction Costs: A Chinese Experiment in Interjurisdictional Contracting," IZA Discussion Papers 9641, Institute of Labor Economics (IZA).
    5. Liu, Xiangping & Lynch, Lori, 2006. "Do Agricultural Preservation Programs Affect Farmland Conversion? Evidence from a Propensity Score Matching Estimator," Working Papers 28569, University of Maryland, Department of Agricultural and Resource Economics.
    6. Bruno, Erica & Falco, Enzo & Shahab, Sina & Geneletti, Davide, 2023. "Integrating ecosystem services in transfer of development rights: a literature review," Land Use Policy, Elsevier, vol. 131(C).

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