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Exurban development

  • Newburn, David
  • Berck, Peter

Exurbia, the rural area beyond the built-up urban and contiguous suburban area, is being developed rapidly with attendant losses in habitat and ecosystem services. This paper analyzes a spatial dynamic model with two production technologies for residential development—municipal sewer service for suburban development and septic systems for exurban development. In outlying agricultural areas, the additional sewer extension costs can significantly reduce the value of agricultural land in suburban use. Exurban development, while at lower density, can occur immediately and requires only the onsite conversion costs of septic systems. Hence, the willingness to pay for exurban use from households with higher preferences for lot size may exceed the agricultural landowner's reservation price on future suburban use for a range of distances from the city boundary. This results in a “feasible zone” for exurban leapfrog development and another fundamental reason for scattered development in the urban–rural fringe.

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Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 62 (2011)
Issue (Month): 3 ()
Pages: 323-336

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Handle: RePEc:eee:jeeman:v:62:y:2011:i:3:p:323-336
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  1. Wu, JunJie & Plantinga, Andrew J., 2003. "The influence of public open space on urban spatial structure," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 288-309, September.
  2. Newburn, David A. & Berck, Peter, 2006. "Modeling Suburban and Rural-Residential Development Beyond the Urban Fringe," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt8wr0b78r, Department of Agricultural & Resource Economics, UC Berkeley.
  3. Caruso, Geoffrey & Peeters, Dominique & Cavailhes, Jean & Rounsevell, Mark, 2007. "Spatial configurations in a periurban city. A cellular automata-based microeconomic model," Regional Science and Urban Economics, Elsevier, vol. 37(5), pages 542-567, September.
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  17. James C. Ohls & David Pines, 1975. "Discontinuous Urban Development and Economic Efficiency," Land Economics, University of Wisconsin Press, vol. 51(3), pages 224-234.
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