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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- 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.
- Kelejian, Harry H & Prucha, Ingmar R, 1999.
"A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
- Harry H. Kelejian & Ingmar R. Prucha, 1995. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," Electronic Working Papers 95-001, University of Maryland, Department of Economics, revised Mar 1997.
- John F. McDonald & Daniel P. McMillen, 2004. "Determinants of Suburban Development Controls: A Fischel Expedition," Urban Studies, Urban Studies Journal Limited, vol. 41(2), pages 341-361, February.
- 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.
- 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.
- David E. Mills, 1989. "Is Zoning a Negative-Sum Game?," Land Economics, University of Wisconsin Press, vol. 65(1), pages 1-12.
- McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
- 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.
- 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.
- B E Carpenter & D R Heffley, 1981. "A spatial equilibrium analysis of flexible zoning and the demand for development rights," Environment and Planning A, Pion Ltd, London, vol. 13(3), pages 273-284, March.
- Rolleston, Barbara Sherman, 1987. "Determinants of restrictive suburban zoning: An empirical analysis," Journal of Urban Economics, Elsevier, vol. 21(1), pages 1-21, January.
- Carpenter, Bruce E. & Heffley, Dennis R., 1982. "Spatial-equilibrium analysis of transferable development rights," Journal of Urban Economics, Elsevier, vol. 12(2), pages 238-261, September.
- McConnell, Virginia & Walls, Margaret & Kopits, Elizabeth, 2006. "Zoning, TDRs and the density of development," Journal of Urban Economics, Elsevier, vol. 59(3), pages 440-457, May.
- Walls, Margaret & McConnell, Virginia & Kopits, Elizabeth, 2005. "Zoning, TDRs, and the Density of Development," Discussion Papers dp-05-32, Resources For the Future.
- McMillen, Daniel P. & McDonald, John F., 1991. "Urban land value functions with endogenous zoning," Journal of Urban Economics, Elsevier, vol. 29(1), pages 14-27, January.
- Mills, David E., 1980. "Transferable development rights markets," Journal of Urban Economics, Elsevier, vol. 7(1), pages 63-74, January.
- Cannaday, Roger E & Colwell, Peter F, 1990. "Optimization of Subdivision Development," The Journal of Real Estate Finance and Economics, Springer, vol. 3(2), pages 195-206, June. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:84:y:2008:i:1:p:1-16. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.