Optimization of floor area ratio regulation in a growing city
Maximum floor area ratio (FAR) regulation is widely imposed in cities to mitigate negative population externalities (e.g. congestion). This paper presents determination of optimal FAR regulation in a two-zone city with a growing population. Results show the following. 1) Maximum FAR regulation alone is generally insufficient. It should be accompanied by minimum FAR regulation in one zone. 2) Optimal regulation at a particular time depends on expected changes in zonal populations over the longest replacement time among newly built buildings at that time. 3) Zonal optimal FAR is expected to vary with time, which might even necessitate replacement of maximum FAR with minimum FAR, and vice versa.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Esteban Rossi-Hansberg, 2004. "Optimal Urban Land Use and Zoning," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(1), pages 69-106, January.
- Lin, C.-C.Chu-Chia & Mai, Chao-Cheng & Wang, Ping, 2004. "Urban land policy and housing in an endogenously growing monocentric city," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 241-261, May.
- T Akita & M Fujita, 1982.
"Spatial development processes with renewal in a growing city,"
Environment and Planning A,
Pion Ltd, London, vol. 14(2), pages 205-223, February.
- T Akita & M Fujita, 1982. "Spatial Development Processes with Renewal in a Growing City," Environment and Planning A, , vol. 14(2), pages 205-223, February.
- Jan K. Brueckner, 1990. "Growth Controls and Land Values in an Open City," Land Economics, University of Wisconsin Press, vol. 66(3), pages 237-248.
- Arnott, Richard J. & MacKinnon, James G., 1977. "Measuring the costs of height restrictions with a general equilibrium model," Regional Science and Urban Economics, Elsevier, vol. 7(4), pages 359-375, November.
- Richard Arnott & James G. MacKinnon, 1976. "Measuring the Costs of Height Restrictions with a General Equilibrium Model," Working Papers 242, Queen's University, Department of Economics.
- Sakashita, Noboru, 1995. "An economic theory of urban growth control," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 427-434, August.
- Wheaton, William C., 1998. "Land Use and Density in Cities with Congestion," Journal of Urban Economics, Elsevier, vol. 43(2), pages 258-272, March. Full references (including those not matched with items on IDEAS)