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A Discrete Space Urban Model With Environmental Amenities

  • Tajibaeva, Liaila
  • Haight, Robert G.
  • Polasky, Stephen

This paper analyzes the effects of providing environmental amenities associated with open space in a discrete space urban model. The discrete space model assumes distinct neighborhoods in which developable land is homogeneous within a neighborhood but heterogeneous across neighborhoods. We solve for equilibrium allocation of development, prices and welfare given a pattern of open space provision. We also analyze the optimal provision of open space across neighborhoods. In equilibrium, housing density and price in a neighborhood is increasing in the amount of open space provided in that neighborhood. Whether housing density and prices in other neighborhoods increases or decreases depends on whether the push from reduced availability of developable land in the neighborhood with increased open space, or the pull of the local amenity value in that neighborhood, is stronger.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 21907.

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Date of creation: 2003
Date of revision:
Handle: RePEc:ags:aaea03:21907
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  1. BRUECKNER, Jan K. & THISSE, Jacques-François & ZENOU, Yves, . "Why is central Paris rich and downtown Detroit poor? An amenity-based theory," CORE Discussion Papers RP 1370, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Kent F. Kovacs & Douglas M. Larson, 2007. "The Influence of Recreation and Amenity Benefits of Open Space on Residential Development Patterns," Land Economics, University of Wisconsin Press, vol. 83(4), pages 475-496.
  3. Berliant, Marcus & Peng, Shin-Kun & Wang, Ping, 2006. "Welfare analysis of the number and locations of local public facilities," Regional Science and Urban Economics, Elsevier, vol. 36(2), pages 207-226, March.
  4. Mitchell Polinsky, A. & Shavell, Steven, 1976. "Amenities and property values in a model of an urban area," Journal of Public Economics, Elsevier, vol. 5(1-2), pages 119-129.
  5. C H Yang & M Fujita, 1983. "Urban spatial structure with open space," Environment and Planning A, Pion Ltd, London, vol. 15(1), pages 67-84, January.
  6. Marshall, Elizabeth P. & Homans, Frances R., 2002. "Urban Planning And The Location Of Environmental Amenities," 2002 Annual meeting, July 28-31, Long Beach, CA 19610, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Wu, JunJie, 2006. "Environmental amenities, urban sprawl, and community characteristics," Journal of Environmental Economics and Management, Elsevier, vol. 52(2), pages 527-547, September.
  8. JunJie Wu, 2001. "Environmental Amenities and the Spatial Pattern of Urban Sprawl," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 691-697.
  9. McMillen Daniel P. & McDonald John F., 1993. "Could Zoning Have Increased Land Values in Chicago?," Journal of Urban Economics, Elsevier, vol. 33(2), pages 167-188, March.
  10. Nelson, Erik & Uwasu, Michinori & Polasky, Stephen, 2007. "Voting on open space: What explains the appearance and support of municipal-level open space conservation referenda in the United States?," Ecological Economics, Elsevier, vol. 62(3-4), pages 580-593, May.
  11. Mills, David E., 1981. "Growth, speculation and sprawl in a monocentric city," Journal of Urban Economics, Elsevier, vol. 10(2), pages 201-226, September.
  12. Vossler, Christian A. & Kerkvliet, Joe & Polasky, Stephen & Gainutdinova, Olesya, 2003. "Externally validating contingent valuation: an open-space survey and referendum in Corvallis, Oregon," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 261-277, June.
  13. Nelson, Jon P., 1979. "Airport noise, location rent, and the market for residential amenities," Journal of Environmental Economics and Management, Elsevier, vol. 6(4), pages 320-331, December.
  14. Flatters, Frank & Henderson, Vernon & Mieszkowski, Peter, 1974. "Public goods, efficiency, and regional fiscal equalization," Journal of Public Economics, Elsevier, vol. 3(2), pages 99-112, May.
  15. Richard Arnott & Alex Anas & Kenneth Small, 1997. "Urban Spatial Structure," Boston College Working Papers in Economics 388., Boston College Department of Economics.
  16. C H Yang & M Fujita, 1983. "Urban Spatial Structure with Open Space," Environment and Planning A, , vol. 15(1), pages 67-84, January.
  17. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, October.
  18. Parks, Peter J. & Schorr, James P., 1997. "Sustaining Open Space Benefits in the Northeast: An Evaluation of the Conservation Reserve Program," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 85-94, January.
  19. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
  20. Wu, JunJie & Plantinga, Andrew J., 2003. "The influence of public open space on urban spatial structure," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 288-309, September.
  21. Mark R. Correll & Jane H. Lillydahl & Larry D. Singell, 1978. "The Effects of Greenbelts on Residential Property Values: Some Findings on the Political Economy of Open Space," Land Economics, University of Wisconsin Press, vol. 54(2), pages 207-217.
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