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Regulation, Open Space, and the Value of Land Undergoing Residential Subdivision

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  • Ian Hardie
  • Erik Lichtenberg
  • Cynthia J. Nickerson

Abstract

We investigate the effects of forest conservation requirements and zoning on the value of land undergoing subdivision. Land prices are increasing in the percentage of subdivision acreage developers are required to keep in forest, suggesting that forest conservation regulations increase the amounts of forested open space that developers provide. Benefits from open-space amenities remain largely internal to the subdivision, so that land market incentives mitigate the justification for open space preservation policies. Consistent with theoretical predictions that zoning promotes sprawl, we find that minimum-lot-size zoning constrains developers of closer-in subdivisions where public sewers are available.

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  • Ian Hardie & Erik Lichtenberg & Cynthia J. Nickerson, 2007. "Regulation, Open Space, and the Value of Land Undergoing Residential Subdivision," Land Economics, University of Wisconsin Press, vol. 83(4), pages 458-474.
    • Handle: RePEc:uwp:landec:v:83:y:2007:i:4:p:458-474
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    Cited by:

    1. Elizabeth Kopits & Virginia McConnell & Margaret Walls, 2007. "The Trade-off between Private Lots and Public Open Space in Subdivisions at the Urban-Rural Fringe," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1191-1197.
    2. Marisa J. Mazzotta & Elena Besedin & Ann E. Speers, 2014. "A Meta-Analysis of Hedonic Studies to Assess the Property Value Effects of Low Impact Development," Resources, MDPI, vol. 3(1), pages 1-31, January.
    3. Lu, Chen-Fu & Cheng, Chia-Yi, 2023. "Does the change of agricultural zoning policy achieve farmland protection in Taiwan?," Land Use Policy, Elsevier, vol. 126(C).
    4. Lichtenberg, Erik & Tra, Constant & Hardie, Ian, 2007. "Land use regulation and the provision of open space in suburban residential subdivisions," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 199-213, September.
    5. Richard J. Vyn, 2012. "Examining for Evidence of the Leapfrog Effect in the Context of Strict Agricultural Zoning," Land Economics, University of Wisconsin Press, vol. 88(3), pages 457-477.
    6. Ferris, Jeffrey & David, Newburn, 2014. "Residential Development And The Effect Of Forest Conservation Policy," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170337, Agricultural and Applied Economics Association.
    7. Reisig, Dawson & Mullan, Katrina & Hansen, Andrew & Powell, Scott & Theobald, David & Ulrich, Rachel, 2021. "Natural amenities and low-density residential development: Magnitude and spatial scale of influences," Land Use Policy, Elsevier, vol. 102(C).
    8. Maria A. Cunha‐e‐Sá & Sofia F. Franco, 2017. "The Effects of Development Constraints on Forest Management at the Urban‐Forest Interface," American Journal of Agricultural Economics, John Wiley & Sons, vol. 99(3), pages 614-636, April.
    9. B. James Deaton & Richard J. Vyn, 2015. "The Effect of Ontario's Greenbelt on the Price of Vacant Farmland," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(2), pages 185-208, June.
    10. Cotteleer, Geerte & van Kooten, G. Cornelis, 2012. "Expert opinion versus actual transaction evidence in the valuation of non-market amenities," Economic Modelling, Elsevier, vol. 29(1), pages 32-40.
    11. Richard J. Vyn, 2015. "The Effect of Agricultural Zoning on Rural Residential Property Values: An Application to Ontario's Greenbelt," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(3), pages 281-307, September.
    12. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    13. Yong Chen & David J. Lewis & Bruce Weber, 2016. "Conservation Land Amenities And Regional Economies: A Postmatching Difference-In-Differences Analysis Of The Northwest Forest Plan," Journal of Regional Science, Wiley Blackwell, vol. 56(3), pages 373-394, June.
    14. Lichtenberg, Erik, 2008. "Open Space and Urban Sprawl: The Case of the Maryland Forest Conservation Act," Working Papers 37812, University of Maryland, Department of Agricultural and Resource Economics.

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    JEL classification:

    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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