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A Note on the Value of Foregone Open Space in Sprawling Cities

  • Jan Rouwendal
  • Wouter Vermeulen

Foregone benefits of the open space that is sacrificed through urban sprawl are hard to quantify. We obtain a simple benchmark measure by introducing a demand for trips beyond the urban boundary into the monocentric city model. The externality arises from the increase in travel costs that expansion of the city imposes on its prior inhabitants. An empirical application illustrates the moderate informational requirements. It indicates that open space externalities warrant rather mild restrictions on urban expansion.

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Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0101.

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Date of creation: Feb 2012
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Handle: RePEc:cep:sercdp:0101
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  1. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761 Elsevier.
  2. Wouter Vermeulen, 2011. "Agglomeration Externalities and Urban Growth Controls," CPB Discussion Paper 191, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Marcy Burchfield & Henry G. Overman & Diego Puga & Matthew A. Turner, 2006. "Causes of Sprawl: A Portrait from Space," The Quarterly Journal of Economics, MIT Press, vol. 121(2), pages 587-633, May.
  4. Wouter Vermeulen, 2011. "Agglomeration Externalities and Urban Growth Controls," SERC Discussion Papers 0093, Spatial Economics Research Centre, LSE.
  5. Colwell, Peter F. & Dehring, Carolyn A. & Turnbull, Geoffrey K., 2002. "Recreation Demand and Residential Location," Journal of Urban Economics, Elsevier, vol. 51(3), pages 418-428, May.
  6. Paul Cheshire & Stephen Sheppard, 2001. "The Welfare Economics of Land Use Planning," Department of Economics Working Papers 2001-03, Department of Economics, Williams College.
  7. Wouter Vermeulen, 2011. "Agglomeration externalities and urban growth controls," LSE Research Online Documents on Economics 57852, London School of Economics and Political Science, LSE Library.
  8. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
  9. Walsh, Randy, 2007. "Endogenous open space amenities in a locational equilibrium," Journal of Urban Economics, Elsevier, vol. 61(2), pages 319-344, March.
  10. 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.
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