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Urban growth boundaries: An effective second-best remedy for unpriced traffic congestion?

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  • Brueckner, Jan K.

Abstract

This paper evaluates the efficacy of the urban growth boundary (UGB) as a second-best substitute for a first-best toll regime in a congested city. Numerical results show that, while a UGB is welfare improving, validating previous theoretical results, the utility gain it generates is a very small fraction of that achieved under a toll regime. Thus, the UGB is not a useful instrument for attacking the distortions caused by unpriced traffic congestion.
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  • Brueckner, Jan K., 2007. "Urban growth boundaries: An effective second-best remedy for unpriced traffic congestion?," Journal of Housing Economics, Elsevier, vol. 16(3-4), pages 263-273, November.
  • Handle: RePEc:eee:jhouse:v:16:y:2007:i:3-4:p:263-273
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    1. Bertaud, Alain & Brueckner, Jan K., 2005. "Analyzing building-height restrictions: predicted impacts and welfare costs," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 109-125, March.
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    4. Jan K. Brueckner, 2000. "Urban Sprawl: Diagnosis and Remedies," International Regional Science Review, , vol. 23(2), pages 160-171, April.
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    6. Arnott, Richard J., 1979. "Unpriced transport congestion," Journal of Economic Theory, Elsevier, vol. 21(2), pages 294-316, October.
    7. Ding, Chengri & Knaap, Gerrit J. & Hopkins, Lewis D., 1999. "Managing Urban Growth with Urban Growth Boundaries: A Theoretical Analysis," Journal of Urban Economics, Elsevier, vol. 46(1), pages 53-68, July.
    8. Duncan Black & Vernon Henderson, 1997. "Urban Growth," NBER Working Papers 6008, National Bureau of Economic Research, Inc.
    9. Pines, David & Sadka, Efraim, 1985. "Zoning, first-best, second-best, and third-best criteria for allocating land for roads," Journal of Urban Economics, Elsevier, vol. 17(2), pages 167-183, March.
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