Making Markets for Development Rights Work: What Determines Demand?
This paper estimates developers’ demand for Transferable Development Rights (TDRs) in one of the few long-standing active TDR programs in the country, Calvert County, Maryland. We find that baseline zoning is a critical determinant of TDR use—demand is lower in the relatively high-density residential areas than in the low-density rural areas. Changes in baseline density limits have a larger effect on TDR use in rural areas than in residential and town center areas. We identify subdivision characteristics that are significant in explaining TDR use and discuss implications for other jurisdictions considering revisions to, or adoption of, TDR programs.
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- Walls, Margaret & McConnell, Virginia, 2004. "Incentive-Based Land Use Policies and Water Quality in the Chesapeake Bay," Discussion Papers dp-04-20, Resources For the Future.
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- Walls, Margaret & McConnell, Virginia & Kopits, Elizabeth, 2005. "Zoning, TDRs, and the Density of Development," Discussion Papers dp-05-32, Resources For the Future.
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- B E Carpenter & D R Heffley, 1981. "A Spatial Equilibrium Analysis of Flexible Zoning and the Demand for Development Rights," Environment and Planning A, , vol. 13(3), pages 273-284, March.
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- Paul Thorsnes & Gerald P. W. Simons, 1999. "Letting The Market Preserve Land: The Case For A Market-Driven Transfer Of Development Rights Program," Contemporary Economic Policy, Western Economic Association International, vol. 17(2), pages 256-266, 04.
- Walls, Margaret & McConnell, Virginia & Kopits, Elizabeth, 2003. "How Well Can Markets for Development Rights Work? Evaluating a Farmland Preservation Program," Discussion Papers dp-03-08, Resources For the Future.
- Rolleston, Barbara Sherman, 1987. "Determinants of restrictive suburban zoning: An empirical analysis," Journal of Urban Economics, Elsevier, vol. 21(1), pages 1-21, January.
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- Daniel P. McMillen & John F. McDonald, 1990. "A Two-Limit Tobit Model of Suburban Land-Use Zoning," Land Economics, University of Wisconsin Press, vol. 66(3), pages 272-282. Full references (including those not matched with items on IDEAS)
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