IDEAS home Printed from https://ideas.repec.org/p/ppi/ppicwp/2005.01.html
   My bibliography  Save this paper

Is Water Policy Limiting Residential Growth? Evidence from California

Author

Listed:
  • Ellen Hanak

Abstract

Rapid population growth and increasing costs of new water supplies have led state and local authorities throughout the American West to institute regulations conditioning the approval of residential development on the adequacy of long-term water availability. Using a measure of local water screening policies from an original survey, this paper examines the effects of these policies on residential housing growth in California from 1994 to 2003. Random- and fixed-effects panel regressions find jurisdictions with local policies to have significantly slower residential growth. These water policy effects are distinct from effects of general growth control measures. Water impact fees, meanwhile, do not significantly slow construction. Water screening policies are not associated with a higher incidence of conservation policies, raising the possibility that some communities may be using water screening as a tool to limit growth, while maintaining high per capita water availability and low water prices. Although such practices may be locally efficient under existing water rights law, in which communities are the rights-holders, they raise the possibility of broader social inefficiencies in the management of water resources. Absent a change in water rights, introduction of explicit buy-in fees for new construction may be a preferred strategy relative to ad hoc administrative review.

Suggested Citation

  • Ellen Hanak, 2005. "Is Water Policy Limiting Residential Growth? Evidence from California," PPIC Working Papers 2005.01, Public Policy Institute of California.
  • Handle: RePEc:ppi:ppicwp:2005.01
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ellen Hanak & Ada Chen, 2007. "Wet Growth: Effects Of Water Policies On Land Use In The American West," Journal of Regional Science, Wiley Blackwell, vol. 47(1), pages 85-108.
    2. Larry D. Singell & Jane H. Lillydahl, 1990. "An Empirical Examination of the Effect of Impact Fees on the Housing Market," Land Economics, University of Wisconsin Press, vol. 66(1), pages 82-92.
    3. Engle, Robert & Navarro, Peter & Carson, Richard, 1992. "On the theory of growth controls," Journal of Urban Economics, Elsevier, vol. 32(3), pages 269-283, November.
    4. Ellen Hanak, 2005. "Water for Growth: California's New Frontier," PPIC Research Reports, Public Policy Institute of California, number wtrgth, dez..
    5. Gregory Burge & Keith Ihlanfeldt, 2006. "The Effects Of Impact Fees On Multifamily Housing Construction," Journal of Regional Science, Wiley Blackwell, vol. 46(1), pages 5-23.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ralph McLaughlin, 2012. "New housing supply elasticity in Australia: a comparison of dwelling types," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 595-618, April.

    More about this item

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ppi:ppicwp:2005.01. 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: (). General contact details of provider: http://edirc.repec.org/data/ppiccus.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.