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Do Zoning Regulations Rob Rural Landowners' Equity?


  • Xiangping Liu
  • Lori Lynch


Zoning regulations are land use control tools used to conserve resource land, limit negative externalities from high density development, and achieve agglomeration benefits from conserving large blocks of land. However, the passage of low-density zoning is often challenged by landowners who claim that through it, they lose their land's equity due to lower land values. We investigate whether low-density zoning impacts rural land value using arm's-length sales in Maryland's nine Eastern Shore counties. Using both a propensity score matching method and an instrumental variable approach, we find that low-density zoning has differentiated impacts. Resource parcels' land values are unaffected, and non-resource parcels' values decrease by 20--50%. Copyright 2010, Oxford University Press.

Suggested Citation

  • Xiangping Liu & Lori Lynch, 2010. "Do Zoning Regulations Rob Rural Landowners' Equity?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 1-25.
  • Handle: RePEc:oup:ajagec:v:93:y:2010:i:1:p:1-25

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    Cited by:

    1. Magliocca, Nicholas & McConnell, Virginia & Walls, Margaret & Safirova, Elena, 2012. "Zoning on the urban fringe: Results from a new approach to modeling land and housing markets," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 198-210.
    2. Xiangping Liu & Lori Lynch, 2011. "Do Agricultural Land Preservation Programs Reduce Farmland Loss? Evidence from a Propensity Score Matching Estimator," Land Economics, University of Wisconsin Press, vol. 87(2), pages 183-201.
    3. Paul Gottlieb, 2013. "Agricultural preservation, large-lot zoning, and real estate development in New Jersey, USA," ERSA conference papers ersa13p513, European Regional Science Association.
    4. Guo, Jianxin & Jin, Songqing & Chen, Lei & Wang, Min & Zhang, Junfeng & Sun, Sufen, 2015. "The Effects of Distance Education on Agricultural Performance and Household Income: Evidence from Suburban Beijing," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205754, Agricultural and Applied Economics Association.
    5. Abbott, Joshua K. & Klaiber, H. Allen, 2011. "The Value Of Water As An Urban Club Good: A Matching Approach To Hoa-Provided Lakes," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103781, Agricultural and Applied Economics Association.

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