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Estimating the Effect of Land Use Regulation on Land Price: At the kink point of building height limits in Fukuoka

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  • NAKAJIMA Kentaro
  • TAKANO Keisuke

Abstract

This study estimates the effect of land use regulation on land price by exploiting the feature of building height limits of the aviation law in Fukuoka, Japan. The law limits the height of a building that is within 4000 meters of an airport to 54.1 m, but when the distance exceeds 4000 meters, the limits are relaxed. Exploiting this regulation feature, we estimate the effect of the regulation on land price using the regression kink design. We find that building height restriction has a significantly negative effect on land price and the magnitude of the effects depends on the stringency of regulation. * We revised this discussion paper with the new tile in October 2023. This paper was previously circulated under the title "Estimating the Impact of Land Use Regulation on Land Price: At the Kink Point of Building Height Limits in Fukuoka."

Suggested Citation

  • NAKAJIMA Kentaro & TAKANO Keisuke, 2021. "Estimating the Effect of Land Use Regulation on Land Price: At the kink point of building height limits in Fukuoka," Discussion papers 21088, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:21088
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    File URL: https://www.rieti.go.jp/jp/publications/dp/21e088.pdf
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    Cited by:

    1. Zhang, Junfu, 2023. "JUE Insight: Measuring the Stringency of Land Use Regulation Using a Shadow Price Approach," Journal of Urban Economics, Elsevier, vol. 133(C).

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    More about this item

    JEL classification:

    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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